Week 7: Merchandising Corporations and Final Submission
Required Journal Entries:
1-Jul	The owner is concerned about unlimited liability being a sole proprietorship. Therefore, the company is converting to a corporation. The owner will receive 2,500 shares of $100 par common stock for the original investment. The balance in owners capital is $325,000.
3-Jul	Issued 30,000 shares of common stock, $10 par value.
14-Jul	Declared a cash dividend of $1.50 per share for the outstanding shares of common stock. (Remember to utilize the correct payable account.)
31-Jul	Paid out the dividend in cash.
General Journal
Date	Account	PR	Dr	Cr
Week 7
1-Jul	Common Stock		250,000.00
	Retained Earnings		75,000.00
	Owners Capital			325,000.00
3-Jul	Cash		300,000.00
	Common Stock			300,000.00
14-Jul	Retained Earnings		45,000.00
	Divendends Declared			45,000.00
31-Jul	Divedends Payable		45,000.00
	Cash			45,000.00