Novak Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued 47,000 shares for cash at $52 per share. July 1 Issued 62,500 shares for cash at $56 per share. Journalize the 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction datechoose a transaction date Feb. 1July 1 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount choose a transaction datechoose a transaction date Feb. 1July 1 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount Post to the stockholders’ equity accounts. (Use T-accounts.) (Post entries in the order of journal entries posted in the previous part.) Preferred Stock choose a transaction datechoose a transaction date 2/17/1 enter a debit amountenter a debit amount choose a transaction datechoose a transaction date 2/17/1 enter a credit amountenter a credit amount choose a transaction datechoose a transaction date 2/17/1 enter a debit amountenter a debit amount choose a transaction datechoose a transaction date 2/17/1 enter a credit amountenter a credit amount choose the end date of the accounting periodchoose the end date of the accounting period Bal. enter a debit balanceenter a debit balance choose the end date of the accounting periodchoose the end date of the accounting period Bal. enter a credit balanceenter a credit balance Paid-in Capital in Excess of Par Value—Preferred Stock choose a transaction datechoose a transaction date 2/17/1 enter a debit amountenter a debit amount choose a transaction datechoose a transaction date 2/17/1 enter a credit amountenter a credit amount choose a transaction datechoose a transaction date 2/17/1 enter a debit amountenter a debit amount choose a transaction datechoose a transaction date 2/17/1 enter a credit amountenter a credit amount choose the end date of the accounting periodchoose the end date of the accounting period Bal. enter a debit balanceenter a debit balance choose the end date of the accounting periodchoose the end date of the accounting period Bal. enter a credit balanceenter a credit balance

Novak Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued 47,000 shares for cash at $52 per share. July 1 Issued 62,500 shares for cash at $56 per share. Journalize the 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction datechoose a transaction date Feb. 1July 1 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount choose a transaction datechoose a transaction date Feb. 1July 1 enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account titleenter an account title enter a debit amountenter a debit amount enter a credit amountenter a credit amount Post to the stockholders’ equity accounts. (Use T-accounts.) (Post entries in the order of journal entries posted in the previous part.) Preferred Stock choose a transaction datechoose a transaction date 2/17/1 enter a debit amountenter a debit amount choose a transaction datechoose a transaction date 2/17/1 enter a credit amountenter a credit amount choose a transaction datechoose a transaction date 2/17/1 enter a debit amountenter a debit amount choose a transaction datechoose a transaction date 2/17/1 enter a credit amountenter a credit amount choose the end date of the accounting periodchoose the end date of the accounting period Bal. enter a debit balanceenter a debit balance choose the end date of the accounting periodchoose the end date of the accounting period Bal. enter a credit balanceenter a credit balance Paid-in Capital in Excess of Par Value—Preferred Stock choose a transaction datechoose a transaction date 2/17/1 enter a debit amountenter a debit amount choose a transaction datechoose a transaction date 2/17/1 enter a credit amountenter a credit amount choose a transaction datechoose a transaction date 2/17/1 enter a debit amountenter a debit amount choose a transaction datechoose a transaction date 2/17/1 enter a credit amountenter a credit amount choose the end date of the accounting periodchoose the end date of the accounting period Bal. enter a debit balanceenter a debit balance choose the end date of the accounting periodchoose the end date of the accounting period Bal. enter a credit balanceenter a credit balance

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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Feb. 1		Issued 47,000 shares for cash at $52 per share.
July 1		Issued 62,500 shares for cash at $56 per share.

Journalize the 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction datechoose a transaction date Feb. 1July 1	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
choose a transaction datechoose a transaction date Feb. 1July 1	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount

Post to the stockholders’ equity accounts. (Use T-accounts.) (Post entries in the order of journal entries posted in the previous part.)

Preferred Stock
choose a transaction datechoose a transaction date 2/17/1	enter a debit amountenter a debit amount	choose a transaction datechoose a transaction date 2/17/1	enter a credit amountenter a credit amount
choose a transaction datechoose a transaction date 2/17/1	enter a debit amountenter a debit amount	choose a transaction datechoose a transaction date 2/17/1	enter a credit amountenter a credit amount
choose the end date of the accounting periodchoose the end date of the accounting period Bal.	enter a debit balanceenter a debit balance	choose the end date of the accounting periodchoose the end date of the accounting period Bal.	enter a credit balanceenter a credit balance

Paid-in Capital in Excess of Par Value—Preferred Stock
choose a transaction datechoose a transaction date 2/17/1	enter a debit amountenter a debit amount	choose a transaction datechoose a transaction date 2/17/1	enter a credit amountenter a credit amount
choose a transaction datechoose a transaction date 2/17/1	enter a debit amountenter a debit amount	choose a transaction datechoose a transaction date 2/17/1	enter a credit amountenter a credit amount
choose the end date of the accounting periodchoose the end date of the accounting period Bal.	enter a debit balanceenter a debit balance	choose the end date of the accounting periodchoose the end date of the accounting period Bal.	enter a credit balanceenter a credit balance

Novak Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock.

- **Feb. 1:** Issued 47,000 shares for cash at $52 per share.
- **July 1:** Issued 62,500 shares for cash at $56 per share.

### Journalize the Transactions

_(Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the 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.)_

| Date | Account Titles and Explanation | Debit | Credit |
|--------|--------------------------------------------------------------|-----------|-------------|
| Feb. 1 | Cash | 2,444,000 | |
| | Preferred Stock | | 2,350,000 |
| | Paid-in Capital in Excess of Par Value-Preferred Stock | | 94,000 |
| July 1 | Cash | 3,500,000 | |
| | Preferred Stock | | 3,125,000 |
| | Paid-in Capital in Excess of Par Value-Preferred Stock | | 375,000 |

### Note:

- For the issuance on Feb. 1, the cash received is recorded as $2,444,000 for 47,000 shares at $52 each. The preferred stock is credited by $2,350,000 (47,000 shares at $50 par value each), and the excess over the par value is credited to the "Paid-in Capital in Excess of Par Value-Preferred Stock" account, which amounts to $94,000.

- For the issuance on July 1, the cash received is $3,500,000 for 62,500 shares at $56 each. The preferred stock is credited with $3,125,000 (62,500 shares at $50 par value each), and the excess over the par value is credited to "Paid-in Capital in Excess of Par Value-Preferred Stock," amounting to $375,000.

The image is a screenshot from an educational accounting platform, displaying a task related to stockholders' equity accounts using T-accounts. It involves managing entries for "Preferred Stock" and "Paid-in Capital in Excess of Par Value—Preferred Stock."

### Task Description:
- **Instruction**: Post to the stockholders’ equity accounts using T-accounts. Post entries in the order of journal entries recorded in the previous part.

### Preferred Stock Section:
- **Columns**: Date, Debit, Credit, Balance.
- **Entries**:
- First Entry: Date is "2/1", with editable fields for amounts in Debit, Credit, and Balance.
- Second Entry: Date is "7/1", with similar editable fields.
- Final Balance Entry: Labeled as "Bal.", with fields for amounts.

### Paid-in Capital in Excess of Par Value—Preferred Stock Section:
- **Columns**: Date, Debit, Credit, Balance.
- **Entries**: Three sets of editable fields for dates and amounts in Debit, Credit, and Balance.

### Additional Features:
- **Buttons**: "eTextbook and Media" and "List of Accounts" can be accessed to aid in the assignment.
- **Controls**: "Save for Later" option available. There are 0 of 3 attempts used, and a button to "Submit Answer" is present.

This interface is designed to help students practice accounting concepts by simulating the process of posting equity account entries in an organized format.

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