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Pronghorn Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's common shares: Date Account Titles and Explanation May 12 Cash Common Shares (Issued 15,100 common shares at $16 per share.) 14 Cash Common Shares (Issued 7,000 preferred shares at $49 per share.) 15 Common Shares Cash (Purchased and retired 1,020 common shares at $14 per share.) 31 Cash Common Shares Gain on Sale of Shares (Issued 550 shares at $17 per share.) Debit Credit 241,600 241,600 343,000 343,000 14,280 14,280 9,350 7,700 1,650 Assume that no other common share transactions had been recorded earlier. Based on the explanation for each entry, prepare the entries that should have been made for the common share transactions. If an entry is correct, repeat the entry. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation May 12 cash Common Shares May 14 cash Preferred Shares May 15 Treasury Shares Cash May 31 Cash Common Shares Debit Credit 241,600 343,000 14,280 9,350 241,600 343,000 14,280 9,350

Pronghorn Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's common shares: Date Account Titles and Explanation May 12 Cash Common Shares (Issued 15,100 common shares at $16 per share.) 14 Cash Common Shares (Issued 7,000 preferred shares at $49 per share.) 15 Common Shares Cash (Purchased and retired 1,020 common shares at $14 per share.) 31 Cash Common Shares Gain on Sale of Shares (Issued 550 shares at $17 per share.) Debit Credit 241,600 241,600 343,000 343,000 14,280 14,280 9,350 7,700 1,650 Assume that no other common share transactions had been recorded earlier. Based on the explanation for each entry, prepare the entries that should have been made for the common share transactions. If an entry is correct, repeat the entry. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation May 12 cash Common Shares May 14 cash Preferred Shares May 15 Treasury Shares Cash May 31 Cash Common Shares Debit Credit 241,600 343,000 14,280 9,350 241,600 343,000 14,280 9,350

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...
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Pronghorn Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's common shares: Date Account Titles and Explanation May 12 Cash Common Shares (Issued 15,100 common shares at $16 per share.) 14 Cash Common Shares (Issued 7,000 preferred shares at $49 per share.) 15 Common Shares Cash (Purchased and retired 1,020 common shares at $14 per share.) 31 Cash Common Shares Gain on Sale of Shares (Issued 550 shares at $17 per share.) Debit Credit 241,600 241,600 343,000 343,000 14,280 14,280 9,350 7,700 1,650 Assume that no other common share transactions had been recorded earlier. Based on the explanation for each entry, prepare the entries that should have been made for the common share transactions. If an entry is correct, repeat the entry. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation May 12 cash Common Shares May 14 cash Preferred Shares May 15 Treasury Shares Cash May 31 Cash Common Shares Debit 241,600 343,000 14,280 9,350 Credit 241,600 343,000 14,280 9,350
Transcribed Image Text:Pronghorn Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's common shares: Date Account Titles and Explanation May 12 Cash Common Shares (Issued 15,100 common shares at $16 per share.) 14 Cash Common Shares (Issued 7,000 preferred shares at $49 per share.) 15 Common Shares Cash (Purchased and retired 1,020 common shares at $14 per share.) 31 Cash Common Shares Gain on Sale of Shares (Issued 550 shares at $17 per share.) Debit Credit 241,600 241,600 343,000 343,000 14,280 14,280 9,350 7,700 1,650 Assume that no other common share transactions had been recorded earlier. Based on the explanation for each entry, prepare the entries that should have been made for the common share transactions. If an entry is correct, repeat the entry. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation May 12 cash Common Shares May 14 cash Preferred Shares May 15 Treasury Shares Cash May 31 Cash Common Shares Debit 241,600 343,000 14,280 9,350 Credit 241,600 343,000 14,280 9,350
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