Pronghorn 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 common shares: Date Account Titles and Explanation May 12 Cash Common Shares (Issued 15,100 common shares at $16 per share.) 14 Cash Common Shares (Issued 7,000 preferred shares at $49 per share.) 15 Common Shares Cash (Purchased and retired 1,020 common shares at $14 per share.) 31 Cash Common Shares Gain on Sale of Shares (Issued 550 shares at $17 per share.) Debit Credit 241,600 241,600 343,000 343,000 14,280 14,280 9,350 7,700 1,650 Assume that no other common share transactions had been recorded earlier. Based on the explanation for each entry, prepare the entries that should have been made for the common share transactions. If an entry is correct, repeat the entry. (List all debit entries before credit entries. 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 O for the amounts.) Date Account Titles and Explanation May 12 cash Common Shares May 14 cash Preferred Shares May 15 Treasury Shares Cash May 31 Cash Common Shares Debit Credit 241,600 343,000 14,280 9,350 241,600 343,000 14,280 9,350
Pronghorn 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 common shares: Date Account Titles and Explanation May 12 Cash Common Shares (Issued 15,100 common shares at $16 per share.) 14 Cash Common Shares (Issued 7,000 preferred shares at $49 per share.) 15 Common Shares Cash (Purchased and retired 1,020 common shares at $14 per share.) 31 Cash Common Shares Gain on Sale of Shares (Issued 550 shares at $17 per share.) Debit Credit 241,600 241,600 343,000 343,000 14,280 14,280 9,350 7,700 1,650 Assume that no other common share transactions had been recorded earlier. Based on the explanation for each entry, prepare the entries that should have been made for the common share transactions. If an entry is correct, repeat the entry. (List all debit entries before credit entries. 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 O for the amounts.) Date Account Titles and Explanation May 12 cash Common Shares May 14 cash Preferred Shares May 15 Treasury Shares Cash May 31 Cash Common Shares Debit Credit 241,600 343,000 14,280 9,350 241,600 343,000 14,280 9,350
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pronghorn 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 common shares:
Date
Account Titles and Explanation
May 12
Cash
Common Shares
(Issued 15,100 common shares at $16 per share.)
14
Cash
Common Shares
(Issued 7,000 preferred shares at $49 per share.)
15
Common Shares
Cash
(Purchased and retired 1,020 common shares at $14 per share.)
31
Cash
Common Shares
Gain on Sale of Shares
(Issued 550 shares at $17 per share.)
Debit
Credit
241,600
241,600
343,000
343,000
14,280
14,280
9,350
7,700
1,650
Assume that no other common share transactions had been recorded earlier. Based on the explanation for each entry, prepare the
entries that should have been made for the common share transactions. If an entry is correct, repeat the entry. (List all debit entries
before credit entries. 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 O for the amounts.)
Date Account Titles and Explanation
May 12
cash
Common Shares
May 14
cash
Preferred Shares
May 15
Treasury Shares
Cash
May 31
Cash
Common Shares
Debit
241,600
343,000
14,280
9,350
Credit
241,600
343,000
14,280
9,350
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