58000 Jdy 12 Received inventory with a market value of Clear

58,000 Jdy 12 Received inventory with a market value of Clear All

Solution

JOURNAL ENTRY Date Account Title Debit Credit .May 23 Cash $10,000 (1000*10) Common stock $1,000 (1000*1) Paid in capital in excess of par,Common stock $9,000 (1000*(10-1) (To record issue of 1000 shares at $10 per share) .July12 Inventory $20,000 Equipment $41,000 Common stock $3,000 (3000*1) Paid in capital in excess of par, Common stock $58,000 (To record issue of 3000 shares against inventory and equipment) Shareholders Equity Common Stock $1 par 16000 shares authorized 4000 shares issued and outstanding $4,000 Paid in capital in excess of par,Common stock $67,000 Retained Earnings $51,000 Total Stock holders\'Equity $122,000