The Kingston Company reported the following on its balance sheet at December 31, 2010:

1. Assume Kingston Company issued all of its stock during 2010. Journalize the company’s issuance of the stock for cash.
2. Was Kingston Company’s main source of stockholders’ equity paid-in capital or profitable operations? How can you tell?

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Common Stock, $0.25 par value, 500,000 shares authorized, 350,000 shares issued and outstanding Paid-in Capital in Excess of Par Retained Earnings $ 87,500 385,500 2,500,000