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.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ayayai Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of...
Ayayai 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 2Cash131,300   Capital Stock131,300     (Issued 10,100 shares of $10 par value common stock at $13 per share)10Cash606,000   Capital Stock606,000     (Issued 10,100 shares of $50 par value preferred stock at $60 per share)15Capital Stock15,375   Cash15,375     (Purchased...
Flint Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of...
Flint 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 what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation’s capital stock. May 2 Cash 109,200     Capital Stock 109,200        (Issued 7,800 shares of $12 par value common stock at $14 per share) 10 Cash 612,000     Capital Stock 612,000        (Issued 12,000 shares of...
Mr. Zaidi, a new and inexperienced accountant for Dairy Corporation, made the following entries in the...
Mr. Zaidi, a new and inexperienced accountant for Dairy Corporation, made the following entries in the books of the company: Sept. 1 Share Capital–Ordinary 36,000(Debit), Retained Earnings 24,000 (Debit); Cash 60,000 (Credit) (Purchased 4,000 shares issued on July 1 for the treasury at $15 per share) You are required to review the above entry and answer: A. Correct B. Incorrect
Selected Stock Transactions Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois....
Selected Stock Transactions Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year: Preferred 2% Stock, $200 par (60,000 shares authorized, 30,000 shares issued) $6,000,000 Paid-In Capital in Excess of Par—Preferred Stock 720,000 Common Stock, $20 par (500,000 shares authorized, 210,000 shares issued) 4,200,000 Paid-In Capital in Excess of Par—Common Stock 550,000 Retained Earnings 24,316,000 During the...
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of...
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $150 par (50,000 shares authorized, 25,000 shares issued) $3,750,000 Paid-In Capital in Excess of Par—Preferred Stock 750,000 Common Stock, $15 par (700,000 shares authorized, 170,000 shares issued) 2,550,000 Paid-In Capital in Excess of Par—Common Stock 330,000 Retained Earnings 15,646,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:...
On January 1, 2017, the stockholders’ equity section of Newlin Corporation shows common stock ($7 par...
On January 1, 2017, the stockholders’ equity section of Newlin Corporation shows common stock ($7 par value) $2,100,000; paid-in capital in excess of par $1,020,000; and retained earnings $1,210,000. During the year, the following treasury stock transactions occurred. Mar. 1 Purchased 51,000 shares for cash at $15 per share. July 1 Sold 11,000 treasury shares for cash at $17 per share. Sept. 1 Sold 9,500 treasury shares for cash at $14 per share. Restate the entry for September 1, assuming...
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of...
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $175 par (90,000 shares authorized, 45,000 shares issued) $7,875,000 Paid-In Capital in Excess of Par—Preferred Stock 1,575,000 Common Stock, $20 par (600,000 shares authorized, 270,000 shares issued) 5,400,000 Paid-In Capital in Excess of Par—Common Stock 700,000 Retained Earnings 32,966,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:...
1. Coronado Corporation’s December 31, 2020 balance sheet showed the following: 7% preferred stock, $20 par...
1. Coronado Corporation’s December 31, 2020 balance sheet showed the following: 7% preferred stock, $20 par value, cumulative, 15300 shares authorized; 5300 shares issued. $ 106000 Common stock, $10 par value, 1090000 shares authorized; 1040000 shares issued, 1010000 shares outstanding. 10400000 Paid-in capital in excess of par—preferred stock. 29000 Paid-in capital in excess of par—common stock. 11590000 Retained earnings. 3790000 Treasury stock (14800 shares). 310800 Coronado’s total paid-in capital was: a. $21814200. b. $22125000. c. $12175000. d. $22435800. 2. Swifty...
Part A In late 2015, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance...
Part A In late 2015, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of 6,000,000 shares of common stock carrying a $1 par value, and 2,000,000 shares of $5 par value, noncumulative, nonparticipating preferred stock. On January 2, 2016, 4,000,000 shares of the common stock are issued in exchange for cash at an average price of $15 per share. Also on January 2, all 2,000,000 shares of preferred stock are issued at $20 per share. Required: 1....
Q.8 Multiple Choice During the year, Todd Corporation issued 200 shares of $20 par value common...
Q.8 Multiple Choice During the year, Todd Corporation issued 200 shares of $20 par value common stock for $50 a share. A total of 500 shares were authorized. In addition, the company purchased 75 shares of treasury stock at $44 a share. Which of the following best presents the related lines in the stockholders’ equity section of the company’s balance sheet? Multiple Choice A Common stock, $20 par value, 500 shares authorized, 200 shares issued, 425 outstanding $ 8,500 Paid...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT