Pinkerton Stores is authorized to issue $13,000$ shares of common stock. During a two$-$month period, Pinkerton completed these stock$-$issuance transactions:

Mar $23$: Issued $3,000$ shared $$6\mathrm{.}00$ par common stock for cash of $$15\mathrm{.}50$ per share.

Apr $12$: Received inventory with a market value of $$20,000$ and equipment

with a market value of $$39,000$ for $3,100$ shares of the $$6\mathrm{.}00$ par

common stock.

Requirements

$1.$ Journalize the transactions.

$2.$ Prepare the stockholders$$ equity section of Pinkerton Stores$$ balance sheet for the transactions given in this exercise. Retained Earnings has a balance of $$46,000.$

Solution:

Req. $1$

Journal

DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT

Mar. $23$ Cash

Common Stock

Paid$-$in Capital in Excess of Par $$ Common

Apr. $12$ Inventory

Equipment

Common Stock

Paid$-$in Capital in Excess of Par $--$ Common

Req. $2$

Stockholders$$ Equity

Common stock, $$6\mathrm{.}00$ par, $13,000$ shares authorized,

$6,100$ shares issued and outstanding

Paid$-$in capital in excess of par $$ common

Retained earnings

Total stockholders$$ equity

$*$Computations: