Stores is authorized to issue10,000 shares of common stock. During a two-month p
ID: 2579508 • Letter: S
Question
Stores is authorized to issue10,000
shares of common stock. During a two-month period,Captain
completed these stock-issuance transactions:
Requirements
1.
Journalize the transactions.
2.
CaptainCaptain
$47,000.
Requirement 1. Journalize the transactions.
JanuaryJanuary
Journal Entry
Date
Accounts
Debit
Credit
Jan
23
Cash
Common Stock
Jan 23 Issued 2,600 shares of $2.50 par common stock for cash of $15.00 per share. Feb 12 Received inventory with a market value of $20,000 and equipment with market value of $45,000 for 3,300 shares of the $2.50 par common stock.Requirements
1.
Journalize the transactions.
2.
Prepare the stockholders' equity section ofCaptainCaptain
Stores' balance sheet for the transactions given in this exercise. Retained Earnings has a balance of$47,000.
Requirement 1. Journalize the transactions.
Begin by journalize the transaction onJanuaryJanuary
23. (Record debits first, then credits. Exclude explanations from any journal entries.)Journal Entry
Date
Accounts
Debit
Credit
Jan
23
Cash
Common Stock
Explanation / Answer
Journal entry ;
2) Prepare shareholder's equity :
Date accounts & explanation debit credit Jan 23 Cash a/c (2600*15) 39000 Common stock a/c (2600*2.5) 6500 Additional paid in capital-common stock (2600*12.50) 32500 (To record issue of common stock) Feb 12 Inventory a/c 20000 Equipment a/c 45000 Common stock a/c 8250 Additional paid in capital- common stock 56750 (To record exchange of common stock)