Intermediate Accounting $105$

May I have the solution and calculation to this exercise please?

Thank you

Marigold 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.

Date Account Titles and Explanation

May $2$ Cash

Capital Stock

$($Issued $14,000$ shares of $$5$ par value common stock at $$16$ per share$)$

May $10$ Cash

Capital Stock

$($Issued $12,000$ shares of $$40$ par value preferred stock at $$80$ per share$)$

May $15$ Capital Stock

Cash

$($Purchased $800$ shares of common stock for the treasury at $$15$ per share$)$

May $31$ Cash

Capital Stock

Gain on Sale of Stock

$($Sold $540$ shares of treasury stock at $$17$ per share$)$

Debit

Credit

$224,000$

$224,000$

$960,000$

$960,000$

$12,000$

$12,000$

$9,180$

$5,400$

$3,780$

On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions. $($List

all debit entries before credit entries. Credit account titles are automatically indented when the 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. Record entries in the order displayed in the problem

statement.$)$

Date

Account Titles and Explanation

Debit

Credit