Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 1, Problem 25E
Financial statements
We-Sell Realty was organized as a corporation on August 1, 20Y7, by the issuance of common stock of $15,000. We-Sell Realty is owned and operated by Omar Farah, the sole stockholder. The following statements for We-Sell Realty were prepared after its first month of operations:
a. Identify the errors contained within the presented financial statements for We-Sell Realty.
b. Prepare a corrected set of financial statements for We-Sell Realty.
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On February 20, services valued at $60,000 relating to the organization of a corporation were performed in
exchange for 1,000 shares of its $25 par value common stock.
Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the
dollar amounts in the debit or credit columns.
View transaction list
Journal entry worksheet
1
On February 20, services valued at $60,000 relating to the organization of a
corporation were performed in exchange for 1,000 shares of its $25 par value
common stock.
Note: Enter debits before credits.
Date
Feb. 20
General Journal
Debit
Credit
The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for
organizing the corporation includes a credit to
Oa. Organizational Expenses.
b. Cash.
c. Goodwill.
d. Common Stock.
4:07 PM
12/20/2019
On February 1 of the current year, Motor, Inc., issued 600 shares of $3 par common stock to an attorney in return for preparing and filing the articles of incorporation. The value of the services is $8,700.
Journalize this transaction. If an amount box does not require an entry, leave it blank.
Feb. 1
Chapter 1 Solutions
Financial And Managerial Accounting
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