Chapter 6
Corporations: Contributed Capital and Dividends
266
AP-5A (
4
)
Earnestine, Kepplinger & Co. began a new public corporation. During the first month of
operations, it had the following share transactions.
Required
a) Earnestine, Kepplinger & Co. issued 10,000 common shares for $100,000 on May 1, 2016.
Write the journal entry to record the transaction.
Date
Account Title and Explanation
Debit
Credit
b) On May 1, 2016, Earnestine, Kepplinger & Co. issued an additional 10,000 common shares
in exchange for land and a building. The land was valued at $60,000 and the building was
valued at $50,000. Record the transaction.
Date
Account Title and Explanation
Debit
Credit
