Exercise 11-12

Gilliam Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review his textbooks on the topic of corporation accounting. During the first month, the accountant made the following entries for the corporations capital stock.

May 2		Cash		259,200
		Capital Stock				259,200
		(Issued 14,400 shares of $15 par value common stock at $18 per share)
10		Cash		921,600
		Capital Stock				921,600
		(Issued 14,400 shares of $54 par value preferred stock at $64 per share)
15		Capital Stock		25,600
		Cash				25,600
		(Purchased 1,600 shares of common stock for the treasury at $16 per share)
31		Cash		9,265
		Capital Stock				5,450
		Gain on Sale of Stock				3,815
		(Sold 545 shares of treasury stock at $17 per share)

On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Dabe Account Titles and Explanation Debit Credit