An inexperienced accountant for Pharoah Company made the following entries. July 1 Sept. 1 Cash Common Stock (Issued 39,000 shares of no-par common stock, stated value $5 per share) Common Stock Retained Earnings Cash (Purchased 4,200 shares issued on July 1 for the treasury at $16 per share) 280,000 33,000 34,200 280,000 67,200 On the basis of the explanation for each entry, prepare the entry that should have been made for the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
An inexperienced accountant for Pharoah Company made the following entries. July 1 Sept. 1 Cash Common Stock (Issued 39,000 shares of no-par common stock, stated value $5 per share) Common Stock Retained Earnings Cash (Purchased 4,200 shares issued on July 1 for the treasury at $16 per share) 280,000 33,000 34,200 280,000 67,200 On the basis of the explanation for each entry, prepare the entry that should have been made for the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Date
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:An inexperienced accountant for Pharoah Company made the following entries.
July 1
Sept. 1
Cash
Common Stock
(Issued 39,000 shares of no-par common stock, stated value $5 per share)
Common Stock
Retained Earnings
Cash
(Purchased 4,200 shares issued on July 1 for the treasury at $16 per share)
280,000
33.000
34,200
280,000
67,200
On the basis of the explanation for each entry, prepare the entry that should have been made for the transactions. (Credit account titles are automatically indented when the amount is entered. Do
not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
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