Hi Splish Inc. 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 corporation's capital stock. J' Date Account Titles and Explanation May 2 Cash Capital Stock (Issued 13,000 shares of $5 par value common stock at $16 per share) May 10 Cash Capital Stock (Issued 11,000 shares of $30 par value preferred stock at $60 per share) May 15 Capital Stock Cash (Purchased 900 shares of common stock for the treasury at $16 per share) May 31 Cash Capital Stock Gain on Sale of Stock (Sold 750 shares of treasury stock at $18 per share) Debit 208,000 660,000 14.400 13,500 Credit 208,000 660,000 14,400 7,500 6,000 On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is requi the account titles and enter O for the amounts.) 27

Splah Inc recently hired a new accountant with extensive egperience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he hod learnad earlier about corporation accounting During the first month, he made the following entries for the corporatioris cagital stock