Ayayai Corp. recently hired a new accountant with extensive experience in accoun

Question

Ayayai Corp. 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 what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's capital stock. On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is requiredselect "No Entry" for the account titles and enter 0 for the amounts.)

Explanation / Answer

Date Account Title    Debit Credit May 2 cash $119,000 Capital Stock at $12 par $102,000 Excess paid up capital over par $12 $17,000 May 10 cash $810,000 Capital stock at $16 $240,000 Excess paid up capital over par $16 $570,000 May 15 Investment in Treasury stock $8,970 Cash $8,970

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