Exercise 13-10 BACK NEXT 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 130,000 Capital Stock 130,000 (Issued 10,000 shares of $10 par value common stock at $13 per share) 10 Cash 600,000 Capital Stock 600,000 (Issued 10,000 shares of $50 par value preferred stock at $60 per share) 15 Capital Stock 15,000 Cash 15,000 (Purchased 1,000 shares of common stock for the treasury at $15 per share) 31 Cash 8,000 Capital Stock 5,000 Gain on Sale of Stock 3,000 (Sold 500 shares of treasury stock at $16 per share)
Exercise 13-10 BACK NEXT 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 130,000 Capital Stock 130,000 (Issued 10,000 shares of $10 par value common stock at $13 per share) 10 Cash 600,000 Capital Stock 600,000 (Issued 10,000 shares of $50 par value preferred stock at $60 per share) 15 Capital Stock 15,000 Cash 15,000 (Purchased 1,000 shares of common stock for the treasury at $15 per share) 31 Cash 8,000 Capital Stock 5,000 Gain on Sale of Stock 3,000 (Sold 500 shares of treasury stock at $16 per share)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 13-10
FULL SCREEN
PRINTER VERSION
1 BACK
NEXT
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
130,000
Capital Stock
130,000
(Issued 10,000 shares of $10 par value common stock at $13 per
share)
10
Cash
600,000
Capital Stock
600,000
(Issued 10,000 shares of $50 par value preferred stock at $60 per
share)
15
Capital Stock
15,000
Cash
15,000
(Purchased 1,000 shares of common stock for the treasury at $15 per
share)
31
Cash
8,000
Capital Stock
5,000
Gain on Sale of Stock
3,000
(Sold 500 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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fda9b6731-953a-40c7-97a4-e60b10014220%2Fdb53e0b5-0b55-4ced-a4ff-55788070a55b%2Fs299tcv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 13-10
FULL SCREEN
PRINTER VERSION
1 BACK
NEXT
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
130,000
Capital Stock
130,000
(Issued 10,000 shares of $10 par value common stock at $13 per
share)
10
Cash
600,000
Capital Stock
600,000
(Issued 10,000 shares of $50 par value preferred stock at $60 per
share)
15
Capital Stock
15,000
Cash
15,000
(Purchased 1,000 shares of common stock for the treasury at $15 per
share)
31
Cash
8,000
Capital Stock
5,000
Gain on Sale of Stock
3,000
(Sold 500 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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