Proko Corporation was just issued a charter by the state of New York. This charter gives Proko

Question:

Proko Corporation was just issued a charter by the state of New York. This charter gives Proko the authority to issue 300,000 shares of $6 par value common stock. Consider the following transactions:
1. Prepare journal entries to record the transactions of Proko Corp. for the month of October.
2. Prepare the Paid-In Capital section of Proko Corporation’s balance sheet at the end of the month.
201X
Oct. 9 Issued 2,150 shares of stock for land and building with fair market value of $17,500 and $18,500, respectively.
14 Accepted subscriptions to 19,600 shares of stock for $250,000 to be paid in two equal installments.
20 Collected first installment on 9,800 shares of common stock subscribed on October 14.
26 Sold 6,000 shares of stock for $82,000.
28 Collected last installment on 9,800 shares of common stock subscribed on October 14 and issued the shares.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: