Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marigold Inc. decided to sell shares to raise additional capital so that it could expand into the rapidly growing service industry. The corporation chose to

Marigold Inc. decided to sell shares to raise additional capital so that it could expand into the rapidly growing service industry. The corporation chose to sell these shares through a subscription basis and publicly notified the investment world. The offering was 51,000 shares at $30 a share. The terms of the subscription were 29% down and the balance was due at the end of six months. All shares were subscribed for during the offering period. (a) Prepare the journal entries for the original subscription, the collection of the down payments, the collection of the balance of the subscription price, and the issuance of the shares. (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.)

Account Titles and Explanation

Debit

Credit

Original Subscription:

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

Collection of Down Payments:

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

Collection of Balance:

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

Issuance of Shares:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Reporting

Authors: Alan Melville

7th Edition

1292293128, 9781292293127

More Books

Students also viewed these Accounting questions

Question

When will advertising be deemed deceptive?

Answered: 1 week ago

Question

13.1 Explain the strategic role of employee benefits.

Answered: 1 week ago