Question

record for jan 6th, 9th and 26th

Question 2. (26 The partners who own Cadence liability of the partnership form of business, so they incorporated as The charter from the state of Florida authorizes the corpor 20 par common stock. In its first month, Cadence Canoes completed the following Cadence Canoes, Inc. ation to issue 175,000 shares of Canoes Co. wished to avoid the unlimited personal transactions: Jan 6. Issued 200 shares of common stock to the promoter for assistance with issuance of common stock. The promotional fee was $5,000. Debit organization expense Jan 9. Issued 10,000 shares of common stock to Bryce Kuhl and 24,000 shares to Arnold turn for cash equal to the stock's market value of $25 per share. The two men n in re were partners in Cadence Canoes Co. Jan 26. Issued 1,200 shares of common stock for $30 cash per share. Requirements: Record the transactions in the journal. (6 points for each journal entry) 1. Jan 6 an9. 6. 2. Prepare the stockholders' equity section of Cadence Canoes, Inc.. balance sheet at January 31, 2015. The ending balance of Retained Earnings is $88,000. (8 points)

Answer 1

Date	Journal entry	Debit	Credit
Jan 6	Organization expense           Common stock (200*20)           Paid in capital in excess of par (to balance) (To record issue of shares for org expense)	5,000	4,000 1,000
Jan 9	Cash (34000 * 25)           Common stock (34000 *20)           Paid in capital in excess of par (34000 *5) (to record issue of shares to Bryce Kuhl and Arnold Ameen)	850,000	680,000 170,000
Jan 26	Cash (1200 *30)         Common stock (1200 *20)         Paid in capital in excess of par (1200 *10) (to record issue of shares for cash)	36,000	24,000 12,000

Stockholders equity section

Common stock, $20 par value,175000 shares authorized 35,400 shares issued	708,000
Additional paid in capital (1000 + 170,000 + 12000)	183,000
Retained earnings	88,000
Total stockholders’ equity	$ 979,000