During its first year of operations, Cole\'s Electronics Inc. completed the foll

Question

During its first year of operations, Cole's Electronics Inc. completed the following transactions relating to shareholders' equity.

Issued 11,000 shares of common stock to accountants for $176,000 of professional services.

The articles of incorporation authorize 5,000,000 shares of common stock with a par value of $1 per share and 1,000,000 preferred shares with a par value of $100 per share.

Record the above transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

During its first year of operations, Cole's Electronics Inc. completed the following transactions relating to shareholders' equity.

Explanation / Answer

Debit $ Credit $ Dr Cash (2900000*16)      46,400,000     Cr Common stock (2900,000 shares at par of $1)     2,900,000     Cr Additonal paid-in capital in excess of par - common stock 43,500,000 Dr Professional Service            176,000    Cr Common stock (11,000 shares at par of $1)           11,000    Cr Additonal paid-in capital in excess of par - common stock         165,000

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