Concord Inc. 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.DateAccount Titles and ExplanationDebitCreditMay 2Cash208,000 Capital Stock 208,000 (Issued 13,000 shares of $ 5 par value common stock at $ 16 per share) May 10Cash660,000 Capital Stock 660,000 (Issued 11,000 shares of $ 30 par value preferred stock at $ 60 per share) May 15Capital Stock14,400 Cash 14,400 (Purchased 900 shares of common stock for the treasury at $ 16 per share) May 31Cash13,500 Capital Stock 7,500 Gain on Sale of Stock 6,000 (Sold 750 shares of treasury stock at $ 18 per share) On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Premium amount not credit to common stock ,it will be credit to capital in excess of par account

Answered: Concord Inc. recently hired a new…

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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Concord Inc. 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.

Date	Account Titles and Explanation	Debit	Credit
May 2	Cash	208,000
	Capital Stock		208,000
	(Issued 13,000 shares of $ 5 par value common stock at $ 16 per share)
May 10	Cash	660,000
	Capital Stock		660,000
	(Issued 11,000 shares of $ 30 par value preferred stock at $ 60 per share)
May 15	Capital Stock	14,400
	Cash		14,400
	(Purchased 900 shares of common stock for the treasury at $ 16 per share)
May 31	Cash	13,500
	Capital Stock		7,500
	Gain on Sale of Stock		6,000
	(Sold 750 shares of treasury stock at $ 18 per share)

On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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