The partners who own Sanders Rafts Inc. wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated as Sanders Rafts, Inc. The charter from the state of Texas authorizes the corporation to issue 100,000 shares of $6 par common stock. In its first month, Sanders Rafts, Inc., completed the following transactions: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Record the transactions in the journal (Record debits first, then credits. Exclude explanations from any journal entries.) Jul 6: Issued 1,100 shares of common stock to the promoter for assistance with issuance of the common stock. The promotional fee was $26,400. Debit Organization Expense. Journal Entry Date Accounts Debit Credit Jul 6 Organization Expense 26,400 Common Stock 2,200 Paid-in Capital in Excess of Par-Common 24,200 Jul 9: Issued 5,000 shares of common stock to Debbie Wells and 11,000 shares to Sarah Sanders in return for cash equal to the stock's market value of $18 per share. The two women were partners in Sanders Rafts, Co. Date Debit Credit Jul Journal Entry Accounts 9 Cash Common Stock Paid-in Capital in Excess of ParCommon 288,000 32,000 256,000 Jul 26: Issued 900 shares of common stock for $15 cash per share. Journal Entry Accounts Date Debit Credit Jul 26 Cash 13,500 Common Stock 1,800 11,700 Paid-in Capital in Excess of Par-Common Requirement 2. Prepare the stockholders' equity section of the Sanders Rafts, Inc., balance sheet at July 31, 2019. The ending balance of Retained Earnings is $70,000. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.) The partners who own Sanders Rafts Inc. wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated as Sanders Rafts, Inc. The charter from the state of Texas authorizes the corporation to issue 100,000 shares of $6 par common stock. In its first month, Sanders Rafts, Inc., completed the following transactions: A (Click the icon to view the transactions.) Debit Credit Read the requirements Journal Entry Date Accounts Jul 9 Cash Common Stock Paid-in Capital in Excess of Par-Common 288,000 32,000 256,000 Jul 26: Issued 900 shares of common stock for $15 cash per share. Journal Entry Accounts Date Credit Debit 13,500 Jul 26 Cash Common Stock 1,800 Paid-in Capital in Excess of Par-Common 11,700 Requirement 2. Prepare the stockholders' equity section of the Sanders Rafts, Inc., balance sheet at July 31, 2019. The ending balance of Retained Earnings is $70,000. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.) Sanders Rafts, Inc. Balance Sheet (partial) July 31, 2019 Stockholders' Equity: Common stock, 6 par, 100,000 shares authorized shares issued and outstanding Paid-in capital in excess of par-common Total paid-in capital Retained earnings 36,000 70,000 Total stockholders' equity
