Exercise 11-5

Novak Corp. 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 what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporations capital stock.

May 2		Cash		94,900
		Capital Stock				94,900
		(Issued 7,300 shares of $10 par value common stock at $13 per share)
10		Cash		520,000
		Capital Stock				520,000
		(Issued 10,000 shares of $17 par value preferred stock at $52 per share)
15		Capital Stock		9,680
		Cash				9,680
		(Purchased 880 shares of common stock for the treasury at $11 per share)

On the basis of the explanation for each entry, prepare the entries that should have been made for the