Question: Mulberry Sporting Goods is authorized to issue 18 000 shares of

Mulberry Sporting Goods is authorized to issue 18,000 shares of common stock. During a two-month period, Mulberry completed these stock-issuance transactions:
Apr 23 Issued 4,000 shares of $1.00 par common stock for cash of $14.75 per share.
May 12 Received inventory with a market value of $14,000 and equipment with market value of $51,000 for 3,400 shares of the $1.00 par common stock.

1. Journalize the transactions.
2. Prepare the stockholders’ equity section of Mulberry Sporting Goods’ balance sheet for the transactions given in this exercise. Retained Earnings has a balance of $53,900.

Sale on SolutionInn
  • CreatedJuly 25, 2014
  • Files Included
Post your question