journal entry for event: Common Stock, $10 Par Value $400,000 Paid-In Capital in Excess of Par:...

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journal entry for event: Common Stock, $10 Par Value $400,000 Paid-In Capital in Excess of Par:...

journal entry for event:

Common Stock, $10 Par Value	$400,000
Paid-In Capital in Excess of Par: Common	600,000
Paid-In Capital, Treasury Stock	5,000
Paid-In Capital, Stock Options	200,000
Retained Earnings	1,200,000
Treasury Stock (5,000 shares)	(100,000)
Total Stockholders’ Equity	$2,305,000

November 1: Corrected an error that was made several years ago, when land that had been purchased for $60,000 was inadvertently expensed

There were 500,000 shares authorized for both preferred and common stock

business accounting

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Answer 1

Answer #1

Journal

Date	Particulars	Debit	Credit
November 1	Land	60,000
	Retained earnings		60,000

Land purchases is a capital expenditure, hence Land will be debited for Land purchased. Appreciation in the value of asset will be credited to retained earnings.

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journal entry for event: Common Stock, $10 Par Value $400,000 Paid-In Capital in Excess of Par:...

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