Journal entries for the capital stock transactions.
Not what you're looking for?
Prepare correct entries for capital stock transactions.
Flores Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review his textbooks on the topic of corporation accounting. During the first month, the accountant made the following entries for the corporation's capital stock.
May 2 Cash 120,000
Capital Stock 120,000
Issued 10,000 shares of $10 par value common stock at $12 per share)
10 Cash 600,000
Capital Stock 600,000
(Issued 10,000 shares of $50 par value preferred stock at $60 per share)
15 Capital Stock 14,000
Cash 14,000
(Purchased 1,000 shares of common stock for the treasury at $14 per share)
31 Cash 8,000
Capital Stock 5,000
Gain on Sale of Stock 3,000
(Sold 500 shares of treasury stock at $16 per share)
Instructions
On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions.
Purchase this Solution
Solution Summary
word file contains journal entries for the capital stock transactions.
Purchase this Solution
Free BrainMass Quizzes
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Motivation
This tests some key elements of major motivation theories.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.