Incentive Corporation was organized in 2012 to operate a financial consulting bu
ID: 2381646 • Letter: I
Question
Incentive Corporation was organized in 2012 to operate a financial consulting business. The charter authorized the following capital stock: common stock, par value $5 per share, 12,000 shares. During the first year, the following selected transactions were completed:
Prepare the journal entry required for each of these transactions.
Prepare the stockholders
Incentive Corporation was organized in 2012 to operate a financial consulting business. The charter authorized the following capital stock: common stock, par value $5 per share, 12,000 shares. During the first year, the following selected transactions were completed:
Complete the table below, indicating the account, amount, and direction of the effect (+ for increase and - for decrease) for the above transactions. (Enter all amounts as positive values.)Explanation / Answer
JOURNAL ENTRY:
A] DEBIT CASH [5900*19] = 112100
CREDIT COMMON STOCK [5900*5] = 29500
CREDIT CAPITAL PAID IN EXCESS OF PAR VALUE[(19-5)*5900] = 82600
B] ] DEBIT CASH [1900*22] = 41800
CREDIT COMMON STOCK [1900*5] = 9500
CREDIT CAPITAL PAID IN EXCESS OF PAR VALUE[(22-5)*1900] = 32300
ASSETS
=
LIABILITIES
+
STOCKHOLDERS EQUITY
A] 112100
=
0
+
112100
B]41800
=
0
+
41800
The stockholders
ASSETS
=
LIABILITIES
+
STOCKHOLDERS EQUITY
A] 112100
=
0
+
112100
B]41800
=
0
+
41800