List of accounts: Accounts Receivable Cash Common Stock Equipment Income Summary

Question

List of accounts:

Accounts Receivable
Cash
Common Stock
Equipment
Income Summary
Inventory
Land
Organization Expense
Paid-in Capital from Treasury Stock
Paid-in Capital in Excess of Par-Common Stock
Paid-in Capital in Excess of Par-Preferred Stock
Paid-in Capital in Excess of Stated Value-Common Stock
Patents
Preferred Stock
Retained Earnings
Share Capital-Ordinary
Share Capital-Preference
Share Premium-Ordinary
Share Premium-Preference
Treasury Stock

Qucstion 2 Peck Corporation is authorized to issue 21 000 shares o ssa par a e 10% preferred stock and 25 000 shares o S alue o m mon stoc on January 1, 2017 tele ercontained the o in st holders equity ala ces. ar $500,000 71,000 330,000 su,000 250,000 Preferred Stock (10,000 shares) Common Stock (66,000 shares) Pald-In Capital In Excess of Par- Common Stock Retalned Earnings During 2017, the following transartions ocarred Feb. 1 Issued 2,200 shares of preferred stock for land having a fair value of $122,000 Mar. ssued 1,000 shareso peeed sxk sht $70 per uly ssued 16,5 shares of common stock for cash at $B per share. sept. Issued 500 shares of preferred stock for a patent. The asking price of the patent was $30,500. Market price for the preferred stock was $69 and the fair value for the patent was Indeterminable. Dec. 1 Issued 7,500 shares of common stock for cash at $8.50 per share. Dec. 31 Net income for the year was $261,000. No dividends were declared. Journal ze he transactions and the closing entry for net corne. Recordjournal entres m th e order presented m te pr blem. redit account titres are automaaticary inde ted· hen amount senterec o not indent manual, Date Account Iitles and Explanation Debit Credit

Explanation / Answer

Solution a:

Journal Entries - Peck Corporation Date Description Debit Credit 1-Feb Land Dr $122,000.00           To Preferred stock $110,000.00           To Paid in capital in excess of par - preferred stock $12,000.00 (To record purchase of land by issuing preferred stock) 1-Mar Cash Dr $70,000.00           To Preferred stock $50,000.00           To Paid in capital in excess of par - preferred stock $20,000.00 (To record issue of preferred stock) 1-Jul Cash Dr $132,000.00           To Common stock $82,500.00           To Paid in capital in excess of par - common stock $49,500.00 (To record issue of coomon stock) 1-Sep Patent Dr $34,500.00           To Preferred stock $25,000.00           To Paid in capital in excess of par - preferred stock $9,500.00 (To record purchase of patent by issuing preferred stock) 1-Dec Cash Dr $63,750.00           To Common stock $37,500.00           To Paid in capital in excess of par - common stock $26,250.00 (To record issue of coomon stock) 31-Dec Income summary Dr $261,000.00           To Retained Earnings $261,000.00 (To record closing entry of net income)

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