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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 1,025 shares of common stock for the treasury at $15 per share)31Cash3,200   Capital Stock2,000   Gain on Sale of Stock1,200     (Sold 200 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. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.

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