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Journal entries for issuing additional shares

Record the following selected transactions in general journal form for Sun Orthopedic Clinic, Inc.Include a brief explanation of the transaction as part of each journal entry.

Oct. 1 The clinic issued 4,000 additional shares of capital stock to Doctor Soges at $50 per share.

Oct. 4 The clinic purchased diagnostic equipment. The equipment cost $75,000, of which $25,000 was paid in cash; a note payable was issued for the balance.

Oct. 12 Issued a check for $9,000 in full payment of an account payable to Zeller Laboratories.

Oct. 19 Purchased surgical supplies for $2,600. Payment is not due until November 28.

Oct. 25 Collected a $24,000 account receivable from Health One Insurance Company.

Oct. 30 Declared and paid a $300,000 cash dividend to stockholders.

Solution Preview

Oct 1. Cash Dr. 200000
To Capital Stock A/c 200000

(Being 4000 additional shares issued@ $50 per share. )

Oct 4. Equipment A/c Dr. 75000
To Notes Payable 50000

Solution Summary

This discusses the journal entries for issuing additional shares