A. Journalized the following transactions and prepare the Trail Balance: January, 2021

1 Pak Wheel corporation issued 10,000 shares of common stock of Rs5 par value and received Rs53,000 cash. The company then purchased back 900 shares out of those at Rs6 per share. The company then resold 500 shares from treasury stock at Rs6.50 per share.

3 Pak Wheel corporation Company A issued 100,000 shares of preferred stock of $30 par value against $1,000,000 in cash and $2,000,000 worth of property, plant and equipment. They carry dividend of $3 per share.

7 Pak Wheel corporation took over the assets of Rs 19,00,000 and liabilities of R 3,00,000 from Shah Ltd. for a purchase consideration of Rs15,19,000.

Pak Wheel corporation issued a promissory note of Rs 17,000 payable after 60 days in favour of Shah Ltd. and the balance amount was paid by issue of equity shares of Rs 100 each at a premium of Rs 25 per share.

Answer rating: 100% (QA)

Date Accounts Titles and Explanation Debit Credit Cash 53000 Com... View the full answer