Exercise 11-5 Marigold Corp. recently hired a new accountant with extensive expe

Question

Exercise 11-5 Marigold Corp. recently hired a new accountant with extensive experiece in accounting for partnerships. Because of the earlier about corporation accounting. During the first month, he made the following entries for the corporation's capital stock May 2 Cash pressure of the new job, the accountant was unable to review what he had leamed 109,200 Capital Stock 109,200 (Issued 7,800 shares of $11 par value common stock at $14 per share) 10 Cash 795,000 Capital Stock 795,000 (Issued 15,000 shares of $19 par value preferred stock at $53 per share) 15 Capital Stock Cash 7,320 7,320 (Purchased 610 shares of common stock for the treasury at $12 per share) 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 problemt. Cred account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Enty" for the account titles and enter o for the amounts) Date Account Titles and Explanation Debit

Explanation / Answer

Date Account Titles and Explanation Debit Credit May.   2 Cash (7800 shares at $14 ) 109,200 Common Stock (7800 Shares at $11 par)      85,800 Paid-in Capital in excess of par -Common (7800 shares at $3)      23,400 Issued 7,800 shares of $11 par common stock at $14 per share May.   10 Cash (15000 shares at $53) 795,000 Preferred Stock (15000 Shares at $19 par) 285,000 Paid-in Capital in excess of par -Preferred (15000 shares at $34) 510,000 Issued 15,000 shares of $19 par value preferred stock at $53 per share May. 15 Treasury Stock        7,320 Cash        7,320 Purchased 610 shares of common stock for the treasury at $12 per share

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