Instructions
Journalize the entries to record the following transactions forMountain Realty Inc. Refer to the Chart of Accounts for exactwording of account titles.
Aug. 26 Issued for cash 128,000 shares of no-par common stockThe stock outstanding when a corporation has issued only oneclass of stock.
(with a stated value of $5) at $6. Oct. 1 Issued at par value 41,000 shares of preferred 1% stock, $10parThe monetary amount printed on a stock certificate.
for cash. Nov. 30
Issued for cash 17,000 shares of preferred 1% stock, $10 par at$11
Chart
CHART OF ACCOUNTS Mountain Realty Inc. General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment
LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 241 Salaries Payable 261 Mortgage Note Payable
EQUITY 311 Common Stock 313 Paid-In Capital in Excess of Stated Value-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary
Journalize the transactions. Refer to the Chart of Accounts forexact wording of account titles.
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JOURNAL
DATE DESCRIPTION POST. REF. DEBIT CREDIT 1
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Solution
DATE DESCRIPTION POST. REF. DEBIT CREDIT 1. [ ]
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REVENUE 410 Sales 610 Interest Revenue
EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Selling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense 537 Organizational Expenses 562 Depreciation Expense-Equipment 590 Miscellaneous Expense 710 Interest
Instructions
Journalize the entries to record the following transactions forMountain Realty Inc. Refer to the Chart of Accounts for exactwording of account titles.
| Aug. | 26 | Issued for cash 128,000 shares of no-par common stock The stock outstanding when a corporation has issued only oneclass of stock. (with a stated value of $5) at $6. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oct. | 1 | Issued at par value 41,000 shares of preferred 1% stock, $10par The monetary amount printed on a stock certificate. for cash. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nov. | 30 | Issued for cash 17,000 shares of preferred 1% stock, $10 par at$11 Chart
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Related questions
On October 31, Legacy Rocks Inc., a marble contractor, issuedfor cash 79,500 shares of $10 par common stock at $11, and onNovember 19, it issued for cash 19,070 shares of preferred stock,$45 par at $56.
Required:
| A. | Journalize the entries forOctober 31 and November 19. Refer to the Chart of Accounts forexact wording of account titles. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| B. | What is the total amount invested (total paid-in capital) byall stockholders as of November 19?
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The following selected accounts appear in the ledger of EJConstruction Inc. at the beginning of the current fiscal year:
| Preferred 1% Stock, $50 par (100,000 shares authorized, 79,600shares issued) | $3,980,000 |
| Paid-In Capital in Excess of ParâPreferred Stock | 159,200 |
| Common Stock, $3 par (5,000,000 shares authorized, 1,870,000shares issued) | 5,610,000 |
| Paid-In Capital in Excess of ParâCommon Stock | 1,215,500 |
| Retained Earnings | 31,497,000 |
During the year, the corporation completed a number oftransactions affecting the stockholdersâ equity
The owners' equity in a corporation.
. They are summarized as follows:
| Jan. | 5 | Issued 532,900 shares of common stock The stock outstanding when a corporation has issued only oneclass of stock. at $9, receiving cash. |
| Feb. | 10 | Issued 11,000 shares of preferred 1% stock at $58. |
| Mar. | 19 | Purchased 45,400 shares of treasury common for $8 pershare. |
| May | 16 | Sold 21,400 shares of treasury common for $10 per share. |
| Aug. | 25 | Sold 4,300 shares of treasury common for $7 per share. |
| Dec. | 6 | Declared cash dividends of $0.50 per share on preferred stockand $0.07 per share on common stock. |
| 31 | Paid the cash dividends. |
Journalize the entries to record the transactions. Refer to theChart of Accounts for exact wording of account titles.
| CHART OF ACCOUNTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EJ Construction Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Pro-Builders Corporation has 1,500,000 shares of $5 par commonstock outstanding. On September 2, Pro-Builders Corporationdeclared a 3% stock dividend to be issued November 30 tostockholders of record on October 3. The market price of the stockwas $36 per share on September 2.
Journalize the entries required on September 2, October 3, andNovember 30. If no entry is required, simply skip to the nexttransaction. Refer to the Chart of Accounts for exact wording ofaccount titles.
| CHARTOF ACCOUNTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pro-Builders Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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