Question 7 Miles Co. had these transactions during the current period. Prepare t

Question

Question 7

Miles Co. had these transactions during the current period.

Prepare the journal entries for the preceding transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

June 12 Issued 50,000 shares of $3 stated value common stock for cash of $250,000. July 11 Issued 2,000 shares of $100 par value preferred stock for cash at $108 per share. Nov. 28 Purchased 2,000 shares of treasury stock for $10,000.

Explanation / Answer

Jun-12 Cash Dr 250000        Common Stock Cr 150000        Capital in excess of par- Common stock Cr 100000 ( To record issuance of common stock 50000 * 3, 50000 *2) Jul-11 Cash Dr 216000        Preferred Stock Cr 200000        Capital in excess of par- Preferred stock Cr 16000 ( To record issuance of preferred stock 2000 *100 , 2000 * 8) Nov-28 Treasury stock Dr 10000           Cash Cr 10000 ( To record purchase of treasury stock)

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