olowing information applies to the questions displayed below) acrant Corporation
ID: 2596085 • Letter: O
Question
olowing information applies to the questions displayed below) acrant Corporation was organized this year to operate a financial consulting business The charter authorized the following stock authorized .common stock, par value $12 per share, 12,500 shares During the year, the following selected transactions were completed a Sold and issued 7.000 shares of common stock for cash at $24 per share b Soid and issued 2,400 shares of common stock for cash at $29 per share c At year end, the accounts reflected income of $7.900 No dividends were declared Required informaton Required: 1. Prepare the journal entries required to record the sale of common stock in (a) and (b). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Sold 7,000 shares of common stock for cash at $24 per share. Note: Enter debits before credits. Transaction General Journal a.Explanation / Answer
Answer = 1 Journal Entries Transaction Account Title and explanation Debit Credit A) Cash (7000 Shares X $ 24 Per Shares) $ 1,68,000 To Common Share Capital (7000 Shares X 12) $ 84,000 To Additioanl Paid in Capital(7000 Shares X 12) $ 84,000 B) Cash (2400 Shares X $ 29 Per Shares) $ 69,600 To Common Share Capital (2400 Shares X 12) $ 28,800 To Additioanl Paid in Capital(2400 Shares X 17) $ 40,800 Answer = 2) STOCKHOLER'S EQUITY SECTION Stockholer's Equity Issued and Paid in Capital 9400 Common Stock @ $ 12 Per Shares $ 1,12,800 Additional Paid in Capital $ 1,24,800 ($ 84,000 + $ 40,800) $ 2,37,600 Retained Earnigns $ 7,900 Total Stockholder's Equity $ 2,45,500
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