Do It! Review 11-2a Martinez Corp. began operations on April 1 by issuing 51,800
ID: 2515341 • Letter: D
Question
Do It! Review 11-2a
Martinez Corp. began operations on April 1 by issuing 51,800 shares of $3 par value common stock for cash at $11 per share. In addition, Martinez issued 1,900 shares of $1 par value preferred stock for $5 per share.
Journalize the issuance of the common and preferred shares. (Credit account titles are automatically indented when amount is entered. Do not indent manually. 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
Date
Account Titles and Explanation
Debit
Credit
April 1 (To record issuance of common shares) April 1 (To record issuance of preferred shares)Explanation / Answer
Date
Particulars
Dr
Cr
Apr-01
Cash Dr (51800*11)
569800
Common stock Cr (51800* 3)
155400
Paid in Capital in access of par Cr (common stock) (569800 - 15540)
414400
Apr-01
Cash Dr (1900*5)
9500
Preferred stock Cr (1900*1)
1900
Paid in Capital in access of par Cr (preferred stock) (9500- 1900)
7600
Date
Particulars
Dr
Cr
Apr-01
Cash Dr (51800*11)
569800
Common stock Cr (51800* 3)
155400
Paid in Capital in access of par Cr (common stock) (569800 - 15540)
414400
Apr-01
Cash Dr (1900*5)
9500
Preferred stock Cr (1900*1)
1900
Paid in Capital in access of par Cr (preferred stock) (9500- 1900)
7600
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