Question

Zone Stores is authorized to issue 18,000 shares of common stock. During a two-month period, Zone completed these stock transactions: (Click the icon to view the transactions.) Read the requirements Requirement 1. Journalize the transactions. Begin by journalize the transaction on May 23. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Date Debit Credit May 23 Requirements * Data Table 1. Journalize the transactions. 2. Prepare the stockholders' equity section of Zone's balance sheet for the transactions. The company's Retained Earnings account has a balance of $50,000 May July 23 Issued 2,000 shares of $2.50 par common stock for cash of $15.50 per share. 12 Received inventory with a market value of $18,000 and equipment with market value of $41,000 for 3.700 shares of the $2.50 par common stock.

Answer 1

35 Credit Debit 31,000 36 Date Account Title & Explanation 23-May Cash (2000*15.50)) Common Stock (2000*2.50)) Additional Paid in Capital in excess of Par 37 5,000 26,000 18,000 41,000 12-Jul Inventory Equipment Common Stock (3700*2.50)) Additional Paid in Capital in excess of Par 9,250 31,750 Zone's Stores Balance Sheet (Stockholder's Equity section) December 31,2022 Stockholder's Equity; Paid In Capital; Common Stock Additional Paid in Capital in Capital in excess of Par Total Paid In Capital Retained Earnings Total Stockholder's Equity 14,250 57,750 72,000 50,000 122,000