ACCT 220 Week 6 Homework Answers

ACCT 220 Week 6 Homework Answers


Week 6

  • An accounting intern recently made the following entries.


May 2              Cash                            $140,000

Common Stock                        $140,000

(Issued 10,000 shares of common stock of $10 stated value at $12 per share.)


May 10            Cash                            $700,000

Preferred Stock                       $700,000

(Issued 10,000 shares of $50 par value preferred stock for $70 per share.)


May 15            Common Stock            $20,000

Cash                                        $20,000

(Purchased 1,000 shares of common stock for the treasury for $20 per share.)


May 31            Cash                            $12,500

Common Stock                        $10.000

Gain on Sale of Stock              $2,500

(Sold 500 shares of treasury stock at $25 per share.)


Based upon the explanation, make the correct entry for each of the above entries. No further explanation required.


Date Account Dr. Cr.





  • Mary Me Not Corporation has $10 par value common stock is actively traded at a market price of $20 per share. Mary issues 5,000 shares to purchase land advertising for sale at $120,000.  Journalize the issuance of the stock in exchange for the land.






  • On August 15, Joe Rainey Corporation purchases 500 shares of par value common stock for the treasury at a cash price of $10 per share. On November 19, it sells 300 shares of the treasury stock for $15 per share.  Journalize the two transactions.





  • In and Out Retailers sell 2,000 shares of $200 par value preferred stock for $220 each. Journalize the entry.



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s