Honcho Stores is authorized to issue 16, 000 shares of common stock. During a tw

Question

Honcho Stores is authorized to issue 16, 000 shares of common stock. During a two-month period, Honcho completed these stock-issuance transactions:

This Question: 4 pts 3014(1 complete) This Test: 20 pts possible Honcho Stores is authorized to issue 16,000 shares of common stock During a two-month period Honcho completed these stockissuance transactions (Click the icon to view the transactions ) 1 Jumalze the transacziens 2 Prepare the stockholders' equty section of Honcho Storesbalance sheot for the transactions given in this exercise. Retained Earnings has a balance of $47,00O. Begin by joumalze the ttansaction on February 23 (Recod debts Grst, then credts. Exlude explanatons rom any joumal entries) Journal En Data Table Date Debit Credit Feb 23 23 Issued 1,000 shares of $2.00 par common stock fer cash of $14 50 per share 12 Received inventory with a market value cf $20,000 and equipment with mark Fab Mar alue of $45.000 for 2,900 sharos of the $2.00 par common stock Neod, journalize the transaction on Manch 12 Journal En Print Done Date Accounts Debit Credit Mat 12 Requirement 2. Prepare the stockte ders equty section e Ho cho S ores balance sheet or the transactions 9h n this exercise Retained Ean ngs has a balance e $47 00 te the accounts in thproper crder or the stockholders' equity section of the balance sheet Balance Sheet Stockheldere Equty sOpat shares shares Total stockholders equity Choose from any list or enter any number in the input ields and then continue to the nexd question

Explanation / Answer

1. a. To record the issue 1,000 shares of common stock for cash Date Account title Debit credit Feb.23 Cash 14500 Common stock 2000 Additional paid-in-capital    - Common stock 12500 1. b. To record the issue 2,900 sharesof common stock for inventory and equipment Date Account title Debit credit Mar.12 Inventory 20000 Equipment 45000 Common stock 5800 Additional paid-in-capital    - Common stock 59200 Balance sheet (Partial) Stockholders' equity: Common stock , $2 par, 16000 shares authorised 7800       3,900 shares issued and outstanding Paid-in-capital in excess of par - Common stock 71700 Retained earnings 47000 Total stockholders' equity 126500

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.