(Learning Objectives 2, 6: Account for stock issuance; report stockholders’equity) The partners who own Jefferson Rafts Co. wished to avoid the unlimited personalliability of the partnership form of business, so they incorporated as Jefferson Rafts, Inc. Thecharter from the state of Vermont authorizes the corporation to issue 200,000 shares of $15 parcommon stock. In its first month, Jefferson Rafts, Inc., completed the following transactions:Jan 6 Issued 900 shares of common stock to the promoter forassistance with issuance of the common stock. The promotionalfee was $27,000. Debit Organization Expense.9 Issued 4,000 shares of common stock to Lindsey Crow and 14,000shares to Jackie Jefferson in return for cash equal to the stock’s marketvalue of $20 per share. The two women were partners in Jefferson Rafts Co.26 Issued 1,600 shares of common stock for $25 cash per share.Requirements1. Record the transactions in the journal.2. Prepare the stockholders’ equity section of the Jefferson Rafts, Inc., balance sheet at March 31,2019. The ending balance of Retained Earnings is $55,000.
(Learning Objectives 2, 6: Account for stock issuance; report
equity
liability of the
charter from the state of Vermont authorizes the corporation to issue 200,000 shares of $15 par
common stock. In its first month, Jefferson Rafts, Inc., completed the following transactions:
Jan 6 Issued 900 shares of common stock to the promoter for
assistance with issuance of the common stock. The promotional
fee was $27,000. Debit Organization Expense.
9 Issued 4,000 shares of common stock to Lindsey Crow and 14,000
shares to Jackie Jefferson in return for cash equal to the stock’s market
value of $20 per share. The two women were partners in Jefferson Rafts Co.
26 Issued 1,600 shares of common stock for $25 cash per share.
Requirements
1. Record the transactions in the journal.
2. Prepare the stockholders’ equity section of the Jefferson Rafts, Inc.,
2019. The ending balance of
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