On April 1, 10,000 shares of $8 par common stock were issued at $25, and on April 7, 3,000 shares of $80 par preferred stock were issued at $107.

Required:

Journalize the entries for April 1 and 7. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTSGeneral LedgerASSETS110Cash120Accounts Receivable131Notes Receivable132Interest Receivable141Merchandise Inventory145Supplies151Prepaid Insurance181Land191Buildings192Accumulated Depreciation-Building193Equipment194Accumulated Depreciation-Equipment

LIABILITIES210Accounts Payable221Notes Payable226Interest Payable231Cash Dividends Payable236Stock Dividends Distributable241Salaries Payable261Mortgage Note Payable

EQUITY311Preferred Stock312Paid-In Capital in Excess of Par-Preferred Stock321Common Stock322Paid-In Capital in Excess of Par-Common Stock323Paid-In Capital in Excess of Stated Value-Common Stock331Treasury Stock332Paid-In Capital from Sale of Treasury Stock340Retained Earnings351Cash Dividends352Stock Dividends390Income Summary

REVENUE410Sales610Interest Revenue

EXPENSES510Cost of Merchandise Sold515Credit Card Expense520Salaries Expense531Advertising Expense532Delivery Expense533Rent Expense534Insurance Expense535Supplies Expense536Organizational Expenses561Depreciation Expense-Building562Depreciation Expense-Equipment590Miscellaneous Expense710Interest Expense