Ayayal Corp. recently hired a new accountant with extensive experience in a counting for partner 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 10 15 Cash Capital Stock Ossued 7,000 shares of $10 par value common stock at $13 per share) Cash Capital Stock Issued 10,000 shares of $20 par value preferred stock at $51 per share) Capital Stock Cash (Purchased 500 shares of common stock for the treasury at $12 per share) 91.000 510,000 6,000 91,000 510,000 6.000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On the basis of the explanation for each entry, prepare the entries 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 List all debit entries before credit entries. It no entry is required, select "No Entry" for the account titles and enter for the
amounts)
Date Account Titles and Explanation
Debit
Credit
Transcribed Image Text:On the basis of the explanation for each entry, prepare the entries 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 List all debit entries before credit entries. It no entry is required, select "No Entry" for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit
Ayayal Corp. 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
100
15
Cash
Capital Stock
Ossued 7,000 shares of $10 par value common stock at $13 per share)
Cash
Capital Stock
Issued 10,000 shares of $20 par value preferred stock at $51 per share)
Capital Stock
(Purchased 500 shares of common stock for the treasury at $12 per share)
91.000
$10,000
6,000
91,000
510,000
6.000
SUB
Transcribed Image Text:Ayayal Corp. 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 2 100 15 Cash Capital Stock Ossued 7,000 shares of $10 par value common stock at $13 per share) Cash Capital Stock Issued 10,000 shares of $20 par value preferred stock at $51 per share) Capital Stock (Purchased 500 shares of common stock for the treasury at $12 per share) 91.000 $10,000 6,000 91,000 510,000 6.000 SUB
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