Problem 1:

The charter of Elm Tree Corporation authorizes the issuance of 800 shares of preferred stock and 2600 shares of common stock. During a two-month period, Elm Tree completed these stock-issuance transactions:

Requirements:

1. Record the transactions in the general journal.

2. Prepare the stockholders equity section of the Elm Tree balance sheet as of April 30, 2018, for the transactions given in this exercise. Retained Earnings has a balance of $70,000 at April 30, 2018.

Problem 2:

1 More Info Mar. 23 Issued 260 shares of $2 par value common stock for cash of $12 per share. Apr. 12 Received inventory with a market value of $25,000 and equipment with a market value of $20,000 for 340 shares of the $2 par value common stock. 17 Issued 800 shares of 7%, $10 par value preferred stock for $10 per share. Print Done