Answer 1 Step 1: Explanation Step 2: Explanation: Step 3: Explanation Answer 2 Explanation Explanation: Final Answer a. Income Statement Using GAAP Amount ($) Sales Revenue $184,000 Cost of Goods Sold -$100,800 Gross Profit $83,200 Operating Expenses -$32,000 Net Income $51,200 b. Income Statement Using Contribution Margin Approach Amount ($) Sales Revenue $184,000 Variable Costs -$59,000 Contribution Margin $125,000 Fixed Costs -$73,800 Net Income $51,200 Both income statements yield the same net income of $51,200, but they provide different insights into the company's financial performance. The GAAP format highlights the breakdown of revenue and expenses according to traditional accounting principles, while the contribution margin approach emphasizes the behavior of costs and revenue. Answer 3 (a) The common stock has a par value of $5 per share: Jan. 10: Debit: Cash ($5 per share * 26,700 shares) = $133,500 Credit: Common Stock ($5 per share * 26,700 shares) = $133,500 July 1: Debit: Cash ($7 per share * 58,500 shares) = $409,500 Credit: Common Stock ($5 per share * 58,500 shares) = $292,500 Credit: Additional Paid-in Capital ([$7 - $5] per share * 58,500 shares) = $117,000 (b) Assuming that the common stock is no-par with a stated value of $1 per share: Jan. 10: Debit: Cash ($5 per share * 26,700 shares) = $133,500 Credit: Common Stock ($1 per share * 26,700 shares) = $26,700 Credit: Additional Paid-in Capital ([$5 - $1] per share * 26,700 shares) = $106,800 July 1: Debit: Cash ($7 per share * 58,500 shares) = $409,500 Credit: Common Stock ($1 per share * 58,500 shares) = $58,500 Credit: Additional Paid-in Capital ([$7 - $1] per share * 58,500 shares) = $351,000 Explanation: The journal entries reflect Concord Corporation's issuance of common stock, detailing transactions with differing par values and cash prices per share. The entries ensure accurate recording of cash inflow, common stock issuance, and additional paid-in capital, aligning with accounting standards for transparency and financial reporting.

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