Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On February 1 of the current year, Motor, Inc. issued 800 shares of $5 par common stock to an attorney in return for preparing and

On February 1 of the current year, Motor, Inc. issued 800 shares of $5 par common stock to an attorney in return for preparing and filing the articles of incorporation. The value of the services is $8,500.

Required:

Journalize this transaction. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS
Motor, Inc.
General Ledger
ASSETS
110 Cash
120 Accounts Receivable
131 Notes Receivable
132 Interest Receivable
141 Merchandise Inventory
145 Supplies
151 Prepaid 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

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_2

Step: 3

blur-text-image_3

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

Government Auditing Standards

Authors: U.S. Government Accountability Office

1st Edition

B0C9S8NVST, 979-8851147746

More Books

Students also viewed these Accounting questions

Question

List the two kinds of fiscal policy.

Answered: 1 week ago