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Exercise 13-10 The articles of incorporation for Novak Technology Inc. authorize the issuance of 100,000 preferred shares and
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Journal entries

Date account and explanation Debit Credit
Mar 23 Cash 120000
Common Stock 120000
Apr 12 Inventory 60000
Equipment 10000
Common Stock 610000
Apr 17 Cash (1500*11) 16500
Preferred stock 16500

Stockholder's equity

Paid in Capital
Common stock 190000
Preferred stock 16500
Total paid in capital 206500
Retained earnings 65000
Total Stockholder's equity 271500
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