Issuance of stock: organization costs. Snowbound Corporation was incorporated in July. The firms charter authorized the sale of 200,000 shares of $10 par-value common stock. The following transactions occurred during the year: 7/1: Sold 45,000 shares of common stock to investors for $18 per share. Cash was collected and the shares were issued. 8/11 Sold 20,000 shares to investors for $22 per share. Cash was collected and the shares were issued. 9/1 Declared a cash dividend on 9/1 for $1.00 a share for shareholders on record 10/1 with payment being made on 11/1.

Instructions a. Prepare journal entries for the two stock issues. b. Prepare journal entries for the cash dividend declaration and payment

. Notes payable. Red Bank Enterprises was involved in the following transactions during the fiscal year ending October 31: 8/2: Borrowed $75,000 from the Bank of Kingsville by signing a 120-day note. 8/20: Issued a $40,000 note to Harris Motors for the purchase of a $40,000 delivery truck. The note is due in 180 days and carries a 12% interest rate. 9/10: Purchased merchandise from Pans Enterprises in the amount of $15,000. Issued a 30-day, 12% note in settlement of the balance owed. 9/11: Issued a $60,000 note to Datatex Equipment in settlement of an overdue account payable of the same amount. The note is due in 30 days and carries a 14% interest rate. 10/10: The note to Pans Enterprises was paid in full. 10/31: The note to Datatex Equipment was paid in full. 11/30: Paid note to Bank of Kingville Instructions a. Prepare journal entries to record the transactions. b. Prepare adjusting entries on October 31 to record accrued interest. c. Prepare the Current Liability section of Red Banks balance sheet as of October 31. Assume that the Accounts Payable account totals $203,600 on this date.