Exercise 8-12

During its first year of operations, Culver Corporation had these transactions pertaining to its common stock.

Jan. 10 Issued 26,800 shares for cash at $4 per share.

July 1 Issued 59,000 shares for cash at $7 per share.

Prepare a tabular summary to record the transactions, assuming that the common stock has a par value of $4 per share. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets - Liabilities + Stockholders' Equity Paid-in-Capital + Common Stock + PIC in Excess of Par Com. + Revenue Retained Earnings - Expense - Cash = Dividend Jan. 10 $ July 1 Prepare a tabular summary to record the transactions, assuming that the common stock has a par value of $1 per share. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets = Liabilities + Stockholders' Equity Paid-in-Capital + Common Stock + PIC in Excess of Par Com. + Revenue Retained Earnings Expense - Cash = Dividend Jan. 10 July 1