Exercise 11-5 Your answer is correct. Tofias Corporation 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. May 2 Cash 102,310 Capital Stock 102,310 (Issued 7,870 shares of $10 par value common stock at $13 per share) 10 Cash 706,860 Capital Stock 706,860 (Issued 13,860 shares of $18 par value preferred stock at $51 per share) 15 Capital Stock 7,540 Cash 7,540 (Purchased 580 shares of common stock for the treasury at $13 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 entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Exercise 11-5

 

	Your answer is correct.

Tofias Corporation 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.

May 2		Cash		102,310
		Capital Stock				102,310
		(Issued 7,870 shares of $10 par value common stock at $13 per share)
10		Cash		706,860
		Capital Stock				706,860
		(Issued 13,860 shares of $18 par value preferred stock at $51 per share)
15		Capital Stock		7,540
		Cash				7,540
		(Purchased 580 shares of common stock for the treasury at $13 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 entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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