Prepare entries that made for capital stock transactions

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Problem - Garcia Corporation 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 capital stock.

May 2

Cash

113,820



Capital Stock


113,820


(Issued 8,130 shares of $10 par value common stock at $14 per share)



May  10

Cash

745,160



Capital Stock


745,160


(Issued 14,330 shares of $19 par value preferred stock at $52 per share)



May  15

Capital Stock

7,480



Cash


7,480


(Purchased 680 shares of common stock for the treasury at $11 per share)



Required - On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions.

Reference no: EM132451029

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