Question

TB Problem 18-150 (Static) rded During its first year of operations, Cole's Electronics Inc. completed the following transactions relating to shareholders' equity. January 5: Issued 1,000,000 shares of common stock for $25 per share. February 12: Issued 20,000 shares of common stock to accountants for $500,000 of professional services. The articles of incorporation authorize 5,000,000 shares of common stock with a par of S1 per share and 1,000,000 preferred shares with a par of $100 per share. Required: Record the above transactions in general Journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No General Journal Credit Date January 05 Debit 25,000,000 1 Cash Common stock Paid in capital - excess of par OOO 1,000,000 25.000.000 2 February 12 Professional services expense Common stock Pald.in capital excess of par

Answer 1

1 . General Journal

No	Date	Account Title and Explanation	Debit	Credit
1	Jan.05	Cash	$25,000,000
		Common Stock		$1,000,000
		Paid in Capital -Excess of Par		$24,000,000
2	Feb.12	Professional Service Expense	$50,000
		Common Stock		$20,000
		Paid In Capital - Excess of Par		$30,000