Question: The partners who own Whitewater Rafts Co wished to avoid

The partners who own Whitewater Rafts Co. wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated as Whitewater Rafts, Inc. The charter from the state of Colorado authorizes the corporation to issue 150,000 shares of $8 par common stock. In its first month, Whitewater Rafts completed the following transactions:
Mar 6 Issued 800 shares of common stock to the promoter for assistance with issuance of the common stock. The promotional fee was $15,600. Debit Organization Expense.
9 Issued 10,000 shares of common stock to Blake Anderson and 25,000 shares to John Jefferson in return for cash equal to the stock’s market value of $23 per share. The two men were partners in Whitewater Rafts Co.
26 Issued 1,400 shares of common stock for $24 cash per share.

1. Record the transactions in the journal.
2. Prepare the stockholders’ equity section of the Whitewater Rafts, Inc., balance sheet at March 31, 2015. The ending balance of Retained Earnings is $83,000.

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  • CreatedJuly 25, 2014
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