Question

Problem 13-03A a-c (Video) The stockholders' equity accounts of Ayayai Corporation on January 1, 2020, were as follows Preferred Stock (8%, $48 par, 10,000 shares authorized) Common Stock ($1 stated value, 1,900,000 shares authorized) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (10,000 common shares) $360,000 1,000,000 100,000 1,400,000 1,750,000 40,000 During 2020, the corporation had the following transactions and events pertaining to its stockholders' equity Feb. 1 Issued 24,000 shares of common stock for $115,000 Apr. 14 Sold 5,500 shares of treasury stock-common for $32,000 Sept. 3 Issued 4,700 shares of common stock for a patent valued at $34,000 Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $5,700. Dec. 31 Determined that net income for the year was $400,000. No dividends were declared during the year. Journalize the transactions and the closing entry for net income. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) DateAccount Titles and Explanation Debit SHOW LIST OF ACCOUNTS Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use 15 for the posting reference.) (Post entries in the order of journal entries presented in the previous part.) Preferred Stock Explanation Ref Debit Credit Balance Date Balance Common Stock Explanation Ref Debit Credit Balance Date Balance 15 15 Paid-in Capital in Excess of Par-Preferred Stock Explanation Ref Debit Credit Balance Date Balance Paid-in Capital in Excess of Stated Value-Common Stock Credit Explanation Ref Debit Balance Date Balance 15 15 Paid-in Capital from Treasury Stock Explanation Ref Debit Credit Balance Date 15 Retained Earnings Date Explanation Ref. Debit Credit Balance vBalance 15 Treasury Stock Date Explanation Ref.Debit Credit Balance ▼ Balance J5 15 SHOW LIST OF ACCOUNTS LINK TO TEXTLINK TO TEXTLINK TO TEXT AYAYAI CORPORATION Balance Sheet (Partial)

Answer 1

ANSWER :-

Date	Account Title and Explanation	Debit	Credit
	Feb 1,2017	Cash	$115,000
		Common stock		$24,000	(24,000*$1)
		Paid in capital in excess of stated value-common stock		$91,000	(115,000-24,000)
		(To record isue of 24,000 common shares for $115,000)
	April 14,2017	Cash	$32,000
		Treasury stock		$        22,000	(5600/10500)*52500
		Paid in capital in excess of stated value-common stock		$10,000	(32,000-10,000)
		(To record sale of 5,500 Treasury stocks at $32,000)
	September,3	Patent	$34,000
		Common Stock		$4,700	(4,700*$1)
		Paid in capital in excess of stated value-common stock		$29,300	(34,000-4,700)
		(To record issue of 4,700 common shares for Patent asset worth $34,000)
	November,10	Treasury Stock	$5,700
		Cash		$5,700
		( To record purchase of 1000 Treaury Stock(common Shares)
	December 31,2017	Income and expense Summary	$400,000
		Retained Earnings		$400,000
		( To record transfer of net income to retained earnings)

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