Question

Journalize the entries to record the following transactions for Mountain Realty Inc. Refer to the Chart...

Journalize the entries to record the following transactions for Mountain Realty Inc. Refer to the Chart of Accounts for exact wording of account titles.

Aug. 26 Issued for cash 108,000 shares of no-par common stock (with a stated value of $5) at $9.
Oct. 1 Issued at par value 43,000 shares of preferred 1% stock, $10 par for cash.
Nov. 30 Issued for cash 15,000 shares of preferred 1% stock, $10 par at $12 .

Chart of Accounts

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
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 Expense

Homework Answers

Answer #1
Mountain Realty Inc.
Journals
Date Account Titles Ref. No# Debit $ Credit $
26-Aug Cash 110 972000
Common Stock 311 540000
Paid-in Capital in excess
of Stated value Common stock 313 432000
Note: 108000 Equity shares issued $9 per share, with an excess of $4 per  
share credited to Paid-in capital
1-Oct Cash 110 430000
Preferred Stock 321 430000
Note: 43000, 1% Preferred stock issued for cash @ $10 par value
30-Nov Cash 110 180000
Preferred Stock 321 150000
Paid-in Capital in excess of Par-Preferred Stock 322 30000
Note: 15000, 1% Preferred stock issued for cash @ $12 per share, $2
being credited to Paid-in capital
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