Question
Gilliam Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of...
Gilliam Corporation recently hired a new accountant with
extensive experience in accounting for partnerships. Because of the
pressure of the new job, the accountant was unable to review his
textbooks on the topic of corporation accounting. During the first
month, the accountant made the following entries for the
corporation’s capital stock.
| May 2 | Cash | 183,600 | ||||
| Capital Stock | 183,600 | |||||
| (Issued 10,200 shares of $15 par value common stock at $18 per share) | ||||||
| 10 | Cash | 663,000 | ||||
| Capital Stock | 663,000 | |||||
| (Issued 10,200 shares of $55 par value preferred stock at $65 per share) | ||||||
| 15 | Capital Stock | 15,750 | ||||
| Cash | 15,750 | |||||
| (Purchased 1,050 shares of common stock for the treasury at $15 per share) | ||||||
| 31 | Cash | 4,800 | ||||
| Capital Stock | 3,000 | |||||
| Gain on Sale of Stock | 1,800 | |||||
| (Sold 300 shares of treasury stock at $16 per share) |
On the basis of the explanation for each entry, prepare the entry
that should have been made for the capital stock transactions.
Homework Answers
Answer #1
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