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    Bunyan Corporation

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    When Bunyan Corporation was formed on January 1, 20xx, the corporate charter provided for 100,000 share of $10 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 8,000 shares of stock at a price of $22.00 per share.
    The entry to record the above transaction would include a ________.

    debit to Cash for $80,000
    credit to Common Stock for $176,000
    credit to Paid in Capital in Excess of Par- for $96,000
    debit to Common Stock for $80,000

    The following totals for the month of June were taken from the payroll register of ABC Company:
    Salaries expense $13,000
    Social security and Medicare Taxes withheld 975
    Income Taxes withheld 2,600
    Retirement Savings 500

    The entry to record the payment of net pay would include a ________.
    debit to Salaries Payable for $13,000
    Debit to Salaries Payable for $8,925
    Credit to Salaries Expense for $8,925
    Credit to Salaries Payable for $8,925

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    Solution Preview

    When Bunyan Corporation was formed on January 1, 20xx, the corporate charter provided for 100,000 share of $10 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 8,000 shares of stock at a price of $22.00 per share.
    The ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer how to entry the record for the accounting transactions for Bunyan Corporation and ABC Company.

    $2.19

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