Cole Corporation, a new corporation, took over the assets and liabilities of Delta Art on January 2, 20X1. The assets and liabilities, after appropriate revaluation by Cole, are as follows (amounts in parentheses are credits? other amounts are debits):

Cash	$	50,400
Accounts Receivable		312,200
Allowance for Doubtful Accounts		(12,500	)
Merchandise Inventory		108,000
Accounts Payable		(37,400	)
Accrued Expenses Payable		(20,700	)

The corporation is authorized to issue 500,000 shares of $20 par-value common stock and 400,000 shares of $10 par-value preferred stock. The preferred stock bears a stated yearly dividend rate of $1 per share. The transactions that follow were entered into at the time the corporation was formed.

DATE		TRANSACTIONS
Jan.	2		The corporation issued 20,000 shares of common stock to James Cole for his equity in the sole proprietorship business, and the corporation took over Cole's assets and liabilities.
	2		Issued 1,100 shares of preferred stock at par to Harriet Cole, James's wife, for cash.
	2		Issued 7,900 shares of common stock to Carol Kennedy. She paid $158,000 in cash for the stock.
	2		Issued 5,100 shares of preferred stock to James Walker. He paid $51,000 in cash for the stock.

Required:

1. Prepare general journal entries to record the transactions.
2. Prepare the opening balance sheet as of January 2, 20X1, for Cole Corporation.

Analyze:

What is the current ratio for the corporation at January 2, 20X1?

Prepare general journal entries to record the transactions. View transaction list Journal entry worksheet 2 3 4 > The corporation issued 20,000 shares of common stock to James Cole for his equity in the sole proprietorship business, and the corporation took over Cole's assets and liabilities. Note: Enter debits before credits. Date General Journal Debit Credit Jan. 02, 20X1Issued 1,100 shares of preferred stock at par to Harriet Cole, James's wife, for cash. Note: Enter debits before credits. Date General Journal Debit Credit Jan. 02, 20X1Issued 7,900 shares of common stock to Carol Kennedy. She paid $158,000 in cash for the stock. Note: Enter debits before credits. Date General Journal Debit Credit Jan. 02, 20X1Issued 5,100 shares of preferred stock to James Walker. He paid $51,000 in cash for the stock. Note: Enter debits before credits. Date General Journal Debit Credit Jan. 02, 20X1Prepare the opening balance sheet as of January 2, 20X1, for Cole Corporation. COLE CORPORATION Balance Sheet January 2, 20X1 Assets Current assets: 0 Total Current Assets 0 Total Assets 0 Liabilities and Stockholders' Equity Current Liabilities: Total Current Liabilities 0 Stockholders' Equity: Total Stockholders' Equity Total Liabilities and Stockholders' Equity 0