(1) An accounting intern recently made the following entries.
May 2 Cash $140,000
Common Stock $140,000
(Issued 10,000 shares of common stock of $10 stated value at $14 per share.)
May 10 Cash $700,000
Preferred Stock $700,000
(Issued 10,000 shares of $50 par value preferred stock for $70 per share.)
May 15 Common Stock $20,000
Cash $20,000
(Purchased 1,000 shares of common stock for the treasury for $20 per share.)
May 31 Cash $12,500
Common Stock $10.000
Gain on Sale of Stock $2,500
(Sold 500 shares of treasury stock at $25 per share.)
Based upon the explanation, make the correct entry for each of the above entries. No further explanation required.
(2) Mary Me Not Corporation has $10 par value common stock is actively traded at a market price of $20 per share. Mary issues 5,000 shares to purchase land advertising for sale at $120,000. Journalize the issuance of the stock in exchange for the land.
(3) On August 15, Joe Rainey Corporation purchases 500 shares of par value common stock for the treasury at a cash price of $10 per share. On November 19, it sells 300 shares of the treasury stock for $15 per share. Journalize the two transactions.
(4) In and Out Retailers sell 2,000 shares of $200 par value preferred stock for $220 each. Journalize the entry.