Prepare journal entries for the following transactions reported by Jet Corporation for the month of July: July 1 Issued 35,000 shares of no-par common stock at P15 per share. July 21 Issued 1,400 shares of P50 par, 10%, cumulative preferred stock for a total of P144,200. July 28 Exchanged 5,000 shares of common stock for a patent valued at P82,000. July 31 Jet Corporation reported a net loss for July amounting to P10,500. Prepare the entry to close the income summary account.
Prepare journal entries for the following transactions reported by Jet Corporation for the month of July: July 1 Issued 35,000 shares of no-par common stock at P15 per share. July 21 Issued 1,400 shares of P50 par, 10%, cumulative preferred stock for a total of P144,200. July 28 Exchanged 5,000 shares of common stock for a patent valued at P82,000. July 31 Jet Corporation reported a net loss for July amounting to P10,500. Prepare the entry to close the income summary account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Prepare
month of July:
July 1 Issued 35,000 shares of no-par common stock at P15 per share.
July 21 Issued 1,400 shares of P50 par, 10%, cumulative preferred stock for a total of
P144,200.
July 28 Exchanged 5,000 shares of common stock for a patent valued at P82,000.
July 31 Jet Corporation reported a net loss for July amounting to P10,500. Prepare the
entry to close the income summary account.
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