Question

Question Help The charter of Holly Corporation authorizes the issuance of 800 shares of preferred stock and 2.200 shares of common stock. During a two-month period, Holly completed these stock-issuance transactions: (Click the icon to view the transactions.) Read the requirements Requirement 2. Prepare the stockholders' equity section of the Holly balance sheet as of April 30, 2018, for the transactions given in this exercise. Retained Earnings has a balance of $79,000 at April 30, 2018 Holly Corporation Balance Sheet (Partial) April 30, 2018 Stockholders' Equity Paid-in Capital Total Paid-in Capital Total Stockholders' Equity Choose from any list or enter any number in the input fields and then click Check Answer Clear AN Check Answer All parts showing X] N oyp] a wi

Answer 1

Journal Entry.

Sr.No	Description	Debit	Credit
	Issue of Common Stock
1	Cash A/c......................Dr	$2730
	To Common Sock		$210
	To Paid in Capital in excess of par value-Common		$$2520
	(Being 210 shares of common stock $ 1 Par value issued at $ 13 Per share)
2	Inventory A/c..................Dr	$23,000
	Equipment A/c................Dr	$17000
	To Common Stock		$330
	To Paid in Capital in excess of par value-Common		$39670
	(Being 330 shares of common stock $ 1 Par value issued in exchange of Inventory and Equipment)
	Issue of Preferred Stock
1	Cash A/c.......................Dr	$32,000
	To Preferred Stock		$32,000
	(Being 800 shares of Preferred stock $ 40 Par value issued at $ 40 Per share)

Shareholder's Equity Section of Holly Balance sheet as of 30 April 2018.

Paid In Capital	Amount
Preferred Stock	$32000
Common Stock	$540
Paid in Capital in excess of par value-Preferred Stock	-
Paid in Capital in excess of par value-Common Stock	$42190
Total Paid up Capital	$74730
Retained Earnings	$79,000
Total Shareholder Equity	$153,730