#20) Military Sporting Goods is authorized to issue 12,000 shares of comon stock
ID: 2716357 • Letter: #
Question
#20) Military Sporting Goods is authorized to issue 12,000 shares of comon stock. During a two-month period, Miliraty completed these stocks issuance transactions.)
July 23 Issued 1,700 shares of $1.50 par common stock for cash fo $15.50 per share.
Aug 12 Received inventory with a market value of $20,000 and Equipment with market value of $46,000 for 3,000
shares of the $1.50 par common stock.
Requirements
1. Journalize the transaction
2. Prepare the stockholders' equity section of Military Sporting Goods' balance sheet for the transactions given
in this exercise. Retained Earnings has a balance of $47,000.
Requirement 1. Journalize the transactions
Begin by journalize the transaction on July23 (record debits first, then credits. Exclude explanations from any journal entries).
Journal Entry
Date Accounts Debits Credits
July 23 (Account Receivable, Cash, Common Stock, __________ ________
Equipment, INventory, Operating Expenses,
Paid-in Capital in Excess of Par-Common,
Paid-in Capital in excess of Par-Preferred.
Preferred Stock, Sales Revenue)
_____________________________________________ ___________ ______________
____________________________________________ __________ _______________
___________________________________________ ___________ _____________
Explanation / Answer
1. Journal entries
2 Stock holder's Equity section
Common stock (4700 Shares of $1.50 each) $7050
Securities premium $85300
Retained eatnings $47000
Total $139350
Date Particualrs Debit Credit July 23 Bank A/c Dr. 26350 To Share capital 2550 To Securities premium 23800 12 Aug Inventory 20000 Equipment 46000 To share capital 4500 To securities premium 61500Related Questions
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