Question

Williamson Corporation was organized in 2014 to operate a tax preparation business. The charter authorized the following capital stock: common stock, par value $2 per share, 80,000 shares. During the first year, the following selected transactions were completed:
a. Sold and issued 50,000 shares of common stock for cash at $50 per share.
b. Bought 2,000 shares from a stockholder for cash at $52 per share.

Required:
1. Give the journal entry required for each of these transactions.
2. Prepare the stockholders’ equity section as it should be reported on the year-end balance sheet.



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  • CreatedJuly 01, 2014
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