Instructions

Journalize the entries to record the following transactions for Mountain Realty Inc. Refer to the Chart of Accounts for exact wording of account titles.

Aug.

26

Issued for cash 128,000 shares of no-par common stock

The stock outstanding when a corporation has issued only one class of stock.

(with a stated value of $5) at $6.

Oct.

1

Issued at par value 41,000 shares of preferred 1% stock, $10 par

The monetary amount printed on a stock certificate.

for cash.

Nov.

30

Issued for cash 17,000 shares of preferred 1% stock, $10 par at $11

Chart

CHART OF ACCOUNTS

Mountain Realty Inc.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
151	Prepaid Insurance
181	Land
193	Equipment
194	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
226	Interest Payable
231	Cash Dividends Payable
236	Stock Dividends Distributable
241	Salaries Payable
261	Mortgage Note Payable

EQUITY

311

Common Stock

313

Paid-In Capital in Excess of Stated Value-Common Stock

315

Treasury Stock

321

Preferred Stock

322

Paid-In Capital in Excess of Par-Preferred Stock

331

Paid-In Capital from Sale of Treasury Stock

340

Retained Earnings

351

Cash Dividends

352

Stock Dividends

390 Income Summary

Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1. [ ]		[ ]	[ ] [ ]	[ ]	[ ]
2
3
4
5
6
7
8

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Selling Expenses
534	Rent Expense
535	Insurance Expense
536	Office Supplies Expense
537	Organizational Expenses
562	Depreciation Expense-Equipment
590	Miscellaneous Expense
710	Interest