Question

Exercise 13-10 Concord Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review his textbooks on the topic of corporation accounting. During the first month, the accountant made the following entries for the corporation's capital stock May 2 225,000 225,000 Cash Capital Stock (Issued 12,500 shares of $15 par value common stock at $18 per share) Cash 812,500 812,500 Capital Stock (Issued 12,500 shares of $55 par value preferred stock at $65 per share) Capital Stock 15 24,375 Cash (Purchased 1,625 shares of common stock for the treasury at $15 per share) Cash 8,000 5,000 3,000 Capital Stock Gain on Sale of Stock (Sold 500 shares of treasury stock at $16 per share) and oualestries in the order presented On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions, (R problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit

Answer 1

	Date	Account titles and explanation					Debit	Credit
	May 2.	Cash					225000
		Common stock				(12500*15)		187500
		Paid in capital in excess of par-common stock				(Plug)		37500
		(Issued 12500 shares of $15 par value common stock
		at $ 18 per share)
	May 10.	Cash					812500
		Preferred stock				(12500*55)		687500
		Paid in capital in excess of par-preferred stock				(Plug)		125000
		(Issued 12500 shares of $55 par value preferred stock
		at $ 65 per share)
	May 15.	Treasury stock					24375
		Cash						24375
		(Purchased 1625 shares of common stock for the treasury
		at $15 per share)
	May 31.	Cash					8000
		Treasury stock				(500*15)		7500
		Paid in capital from treasury stock				(Plug)		500
		(Sold 500 shares of treasury stock at $16 per share)