Journal entries for the capital stock transactions.
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.
Solution Summary
word file contains journal entries for the capital stock transactions.
Journal Entries for Common Stock Transaction and Effect of ... 1. Record the above transactions in general journal. ... 1 Cash Common stock Paid in capital in excess ...
... In the books of Norris Corporation Journal entries. Date Particulars Dr. Cr. ... Common stock $60000. Additional Paid in capital: common stock $180000. ...
... The solution prepares journal entries for stock transactions. ... DATE PARTICULARS DEBIT CREDIT 1-Jul CASH A/C DR 3000000 TO EQUITY SHARE CAPITAL A/C 200000 TO ...
... The journal entry is Land Dr 52,000 Common Stock (1,000 ... $5) Cr 5,000 Additional paid in capital Cr 47,000 ... The solution explains the journal entries for the given ...
... Analyze and record the transactions as journal entries. ... Mortgage Payable 55,000 (Entry for purchase of ... the sale of a corresponding Capital Stock 25,000 amount ...
... The entry is Oct ... Treasury Stock Cr (2,000 X 17) 34,000 Paid in capital - treasury stock... The solution assists in preparing journal entries for the treasury stock...
... e) Paid-in capital - restricted stock 15,000,000 ... The expert prepares the journal entries that fortune for ... Account Title Debit Credit a) NO JOURNAL ENTRY. ...
... in the accounts and post the journal entries to the ... a. Journalize the transactions and the closing entry for net ... Common Stock 15,000 Paid in capital in excess ...
... As written earlier, the balance in paid in capital is $12,000 ... The solution explains the journal entries relating to treasury stock transactions. ... The entry is Mar ...
... T accounts.) (c) Prepare the adjusting entry at December ... The solution explains the journal entries to be made ... par value) $1,500,000; paid-in capital in excess ...