1 Joumalize the transactions Begin by jounalize the transact

1. Joumalize the transactions. Begin by jounalize the transaction on May 23. (Record debits frst, then credts. Exclude explanations from any joumal entries ) Date Data Table May 23 May 23 issued 1,000 shares of $1.00 par common stock for cash of $16.00 per share value of $41,000 for 3,000 shares of the $1.00 par common stock.

Solution

Journal Entries Date Account Titles Debit Credit May 23 Cash (1000 shares x $16) $16,000.00 Paid in capital in excess of par (1000 shares x ($16 - $1) $15,000.00 Common Stock (1000 shares x $1) $1,000.00 July 12 Inventory $20,000.00 Equipment $41,000.00 Paid in capital in excess of par (difference) $58,000.00 Common Stock (3000 shares x $1) $3,000.00