On April 1, 12,000 shares of $6 par common stock were issued at $24, and on April 7, 4,000 shares of $60 par preferred stock were issued at $106.

Required:

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

CHART OF ACCOUNTS

General Ledger

ASSETS

110 Cash

120 Accounts Receivable

131 Notes Receivable

132 Interest Receivable

141 Merchandise Inventory

145 Supplies

151Prepaid Insurance

181 Land

191 Buildings

192 Accumulated Depreciation-Building

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 Preferred Stock

312 Paid-In Capital in Excess of Par-Preferred Stock

321 Common Stock

322 Paid-In Capital in Excess of Par-Common Stock

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

331 Treasury Stock

332 Paid-In Capital from Sale of Treasury Stock

340 Retained Earnings

351 Cash Dividends

352 Stock Dividends

390 Income Summary

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 Rent Expense

534 Insurance Expense

535 Supplies Expense

536 Organizational Expenses

561 Depreciation Expense-Building

562 Depreciation Expense-Equipment

590 Miscellaneous Expense

710 Interest Expense