Tunic Corporation was organized on April 1, with an authorization of 25,000 shares of six percent,...

Transcribed Image Text:

Tunic Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred: Apr. 1 Issued 82,000 shares of common stock at $17 cash per share. 3 Issued 2,200 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $33,000. 8 Issued 5,000 shares of common stock in exchange for equipment with a fair market value of $50,000. 20 Issued 8,000 shares of preferred stock for cash at $55 per share. Required a. Prepare journal entries to record the above transactions. General Journal Date Apr.01 Cash Common Stock Paid-in-Capital in Excess of Par Value - Common Stock Issued shares of common stock. Apr.03 Organization Costs Common Stock Pald-In-Capital In Excess of Par Value - Common Stock Issued common stock for organization costs. Apr.08 Equipment Description Common Stock Apr 20 Cash # + Debit ✓$ 1,394,000 ✓ S ✓ 0✔ 0 Paid in Capital Preferred Stock Common Stock Additional Paid-in-Capital Paid-in-Capital in Excess of Par value - Preferred Stock Paid-in-Capital in Excess of Par value - Common Stock Total Paid-in-Capital + ✓ Retained Earnings + ✓ Total Stockholders' Equity ◆ V + V V Paid-in-Capital in Excess of Par Value - Common Stock ✔ Issued common stock for equipment. ✔5 ✔ ✔ ✔ Preferred Stock Paid-in-Capital in Excess of Par Value Preferred Stock ✔ Issued shares of preferred stock. V 0x 0 x $ 0x 0 x 0x 0✓ 0✓ $ 0 x 0 x 0✓ 0 b. Prepare the stockholders' equity section of the balance sheet at April 30. Assume that the net income for April is $49,000. Stockholders' Equity 0x Credit 0 x 0x 0x 0x 0✔ 400,000 * 22.000 x 0✔ 0x 0 x 0 0x 0x 0✔ 0 x 0x Tunic Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred: Apr. 1 Issued 82,000 shares of common stock at $17 cash per share. 3 Issued 2,200 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $33,000. 8 Issued 5,000 shares of common stock in exchange for equipment with a fair market value of $50,000. 20 Issued 8,000 shares of preferred stock for cash at $55 per share. Required a. Prepare journal entries to record the above transactions. General Journal Date Apr.01 Cash Common Stock Paid-in-Capital in Excess of Par Value - Common Stock Issued shares of common stock. Apr.03 Organization Costs Common Stock Pald-In-Capital In Excess of Par Value - Common Stock Issued common stock for organization costs. Apr.08 Equipment Description Common Stock Apr 20 Cash # + Debit ✓$ 1,394,000 ✓ S ✓ 0✔ 0 Paid in Capital Preferred Stock Common Stock Additional Paid-in-Capital Paid-in-Capital in Excess of Par value - Preferred Stock Paid-in-Capital in Excess of Par value - Common Stock Total Paid-in-Capital + ✓ Retained Earnings + ✓ Total Stockholders' Equity ◆ V + V V Paid-in-Capital in Excess of Par Value - Common Stock ✔ Issued common stock for equipment. ✔5 ✔ ✔ ✔ Preferred Stock Paid-in-Capital in Excess of Par Value Preferred Stock ✔ Issued shares of preferred stock. V 0x 0 x $ 0x 0 x 0x 0✓ 0✓ $ 0 x 0 x 0✓ 0 b. Prepare the stockholders' equity section of the balance sheet at April 30. Assume that the net income for April is $49,000. Stockholders' Equity 0x Credit 0 x 0x 0x 0x 0✔ 400,000 * 22.000 x 0✔ 0x 0 x 0 0x 0x 0✔ 0 x 0x

Answer rating: 100% (QA)

A Date Description Debit Credit 1Apr Cash 8200017 1394000 Common Stock 820005 410000 ... View the full answer