Instructions Journalize the entries to record the following transactions for Mou
ID: 2422935 • Letter: I
Question
Instructions
Journalize the entries to record the following transactions for Mountain Realty Inc. Refer to the Chart of Accounts for exact wording of account titles.
The stock outstanding when a corporation has issued only one class of stock.
The monetary amount printed on a stock certificate.
30
Issued for cash 17,000 shares of preferred 1% stock, $10 par at $11
Chart
390 Income Summary
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 10
JOURNAL
1
2
3
4
5
6
7
8
Solution
1. [ ]
[ ]
[ ] [ ]
[ ]
[ ]
2
3
4
5
6
7
8
Aug. 26 Issued for cash 128,000 shares of no-par common stockThe stock outstanding when a corporation has issued only one class of stock.
(with a stated value of $5) at $6. Oct. 1 Issued at par value 41,000 shares of preferred 1% stock, $10 parThe monetary amount printed on a stock certificate.
for cash. Nov.30
Issued for cash 17,000 shares of preferred 1% stock, $10 par at $11
Chart
CHART OF ACCOUNTS Mountain Realty Inc. General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Common Stock 313 Paid-In Capital in Excess of Stated Value-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends390 Income Summary
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 10
JOURNAL
DATE DESCRIPTION POST. REF. DEBIT CREDIT1
2
3
4
5
6
7
8
Solution
DATE DESCRIPTION POST. REF. DEBIT CREDIT1. [ ]
[ ]
[ ] [ ]
[ ]
[ ]
2
3
4
5
6
7
8
REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Selling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense 537 Organizational Expenses 562 Depreciation Expense-Equipment 590 Miscellaneous Expense 710 InterestExplanation / Answer
Paid-In Capital in Excess of Stated Value-Common Stock
Mountain Raelity Inc Journal Entry Date Account Title Dr$ Cr $ Aug 26. Cash 768,000.00 Common Stock 640,000.00Paid-In Capital in Excess of Stated Value-Common Stock
128,000.00 Issue of 128000 common stock no par, stated value $5 , at $6 1-Oct Cash 410,000.00 Preferred Stock 410,000.00 (issued of 41000 pref stock @par value $10) Nov 30. Cash 187,000.00 Preferred Stock 170,000.00 Paid-in Capital in Excess of Par-Preferred Stock 17,000.00 (issue of 17000 pref stock, $10 par @$11)