ncentive Corporation was authonized to lssue 12000 shares of

ncentive Corporation was authonized to lssue 12.000 shares of common stock, each with o $2 par value. Durtng its first year, the following selected transactions were completed: a. Issued 5,700 shares of common stock for cash at $20 per share. b. Issued 1,700 shares of common stock for cash at $23 per share. value 10.00 points Required 1. Complete the table below, indicating the account, amount, and direction of the effect for the above transactions. (Enter any decreases to account balances with a minus sign.) fes

Solution

Effect of transaction :

Transaction	Assets		=	Liabilities		+	Stockholder\'s equity
a.	Cash	114000					Common Stock	11400
							Paid in capital in excess of par value-Common Stock	102600
b	Cash	39100					Common Stock	3400
							Paid in capital in excess of par value-Common Stock	35700