Exercise 15-8 sunland Inc. recently n red a new accountant with extensive expera

Question

Exercise 15-8 sunland Inc. recently n red a new accountant with extensive experar ce n account ng or partnerships. Becausa o the pressure of the new job, the accountant was unaale to ravlew what he had laamad erier ab ut carporation accounting During the tirst month, he made the fellowing entries for the corporation's cepital stock. Date Account Tities and Explanation May 2 Cash Dcbit Credit Capital Stock (Tssuad 14,00 shares of $5 nar value cammon stock at 1 par shara) 252,000 May 10 Cash Capitel Stluck (issued 12,UOU shares ofU par value preferred stock dt SYV per share) May 15 Capital Stock Cash 12.600 (Purchasad 900 sharcs af ccmmon stock for the treasury a $14 per chare) Hay 31 Cash Capital Stock Gain on Sale of Stock 4,320 (Sold 720 shares of treasury stock at $16 per share) On the basis of the explanation for eath entry, prepare the entries that shculd have been made for the capital stock trensactions. (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 tities and enter For the amoonts.

Explanation / Answer

Date Account Titles & Explanations Debit Credit 2-May Cash (14000*18) 252000 Common stock (14000*5) 70000 Paid in capital in excess of par-CS 182000 10-May Cash (12000*80) 960000 Preferred Stock (12000*40) 480000 Paid in capital in excess of par -PS 480000 15-May Treasury stock 12600 cash (900*14) 12,600 31-May Cash (720*16) 11520 Treasury stock (720*14) 10080 paid in capital in excess of par-TS 1440

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.