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    Accounting Transactions

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    On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions.

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    Solution Preview

    The par value goes to capital stock and the difference between the par value and the issue price goes to Additional paid-in Capital.

    in May 2 transaction, Par Value is $5 and premium is $7. The entry would be
    Cash 144,000
    Common Stock 60,000 ( 12,000 ...

    Solution Summary

    The solution explains the correct entry to be made for some capital stock transactions undertaken by Art Wyatt Corporation