Question

TB Problem 18-150 (Static) 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 $1 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.) Answer is complete but not entirely correct. No Date January 05 Debit Credit 1 General Journal Cash Common stock Pald.in capital excess of par 45,000,000 1,500,000 43,500,000

Answer 1

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	Cole's Electronics
	Journal Entry
Date	Accounts	Debit $	Credit $
5-Jan	Cash	25,000,000.00
	Common Stock		1,000,000.00
	Paid in capital- excess of par		24,000,000.00
12-Feb	Professional expense	500,000.00
	Common Stock		20,000.00
	Paid in capital- excess of par		480,000.00