Would you please answer with t-accounts. Thank you IIA-10 IIA-5. (Similar to pro
ID: 2580960 • Letter: W
Question
Would you please answer with t-accounts. Thank you
IIA-10 IIA-5. (Similar to problem 11A-1 and 11A-2 combined) Prepare the T- account entries Corporation for the following stock transactions of the ALEXANDER April IS Issued 8,000 shares of no par preferred stock for S14 per share May 8 July 16 July 27 Issued 900 shares of S5 par preferred stock for $17 per share. Issued 800 shares of S4 par common stock for $12 per share. Issued 2,500 shares of S10 par common stock in return for a patent with a fair market value of $78,000. August 3 sued 1,000 shares of $2 par common stock for $68 per share The down payment is $52 per share with the reminder to be paid in three months. Nov 3 Investor pays remainder of amount owed on the August 3 stock purchaseExplanation / Answer
Solution:
T-Accounts
Preferred Stock
May.8 (900 Shares x $5)
$4,500
Additional Paid in Capital in excess of par - Preferred Stock
April.18 (8000*14)
$112,000
May.8 (900 Shares x $12)
$10,800
Common Stock
July.16 (800 Shares x Par $4)
$3,200
July.27 (2500 Shares x Par $10)
$25,000
Nov.3 (1000 * 2)
$2,000
Share Application Money Account
Common Stock (1000 Shares x Par $2)
$2,000
Aug.3 (1000 Shares x $52)
$52,000
Additional Paid in Capital in excess of par common stock (1000*66)
$66,000
Nov.3 (1000 Shares x $16)
$16,000
Additional Paid in Capital in excess of par - Common Stock
July.16 (800 Shares x 8)
$6,400
July.27 (78,000 -25,000)
$53,000
Nov.3 (1000 Shares x $66)
$66,000
Patent
July.27
$78,000
Cash
April.18 (8000*14)
$112,000
May.8 (900 Shares x $17)
$15,300
July.16 (800 Shares x $12)
$9,600
Aug.3 (1000 Shares x $52)
$52,000
Nov.3 (1000 Shares x 16)
$16,000
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Preferred Stock
May.8 (900 Shares x $5)
$4,500
Additional Paid in Capital in excess of par - Preferred Stock
April.18 (8000*14)
$112,000
May.8 (900 Shares x $12)
$10,800
Common Stock
July.16 (800 Shares x Par $4)
$3,200
July.27 (2500 Shares x Par $10)
$25,000
Nov.3 (1000 * 2)
$2,000
Share Application Money Account
Common Stock (1000 Shares x Par $2)
$2,000
Aug.3 (1000 Shares x $52)
$52,000
Additional Paid in Capital in excess of par common stock (1000*66)
$66,000
Nov.3 (1000 Shares x $16)
$16,000
Additional Paid in Capital in excess of par - Common Stock
July.16 (800 Shares x 8)
$6,400
July.27 (78,000 -25,000)
$53,000
Nov.3 (1000 Shares x $66)
$66,000
Patent
July.27
$78,000
Cash
April.18 (8000*14)
$112,000
May.8 (900 Shares x $17)
$15,300
July.16 (800 Shares x $12)
$9,600
Aug.3 (1000 Shares x $52)
$52,000
Nov.3 (1000 Shares x 16)
$16,000
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