Question

on january 22, zentric corporation issued for cash 160,000 shares of no-par common stock at $8. on february 14, zentric issued at par value 45,000 shares of preferred 2% stock, $50 par for cash. on august 30, zentric issued for cash 10,000 shares of preferred 2% stock, $50 par at $56. Journalize the entries to record the January 22, February 14, and August 30 transactions Refer to the Chart of Accounts for exact wording of account titles Journalize the entries to record the January 22, February 14, and August 30 transactions. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

Answer 1

To journalize the January 22 transaction, we would make the following entry:

Jan 22

Cash $1,280,000

Common Stock (No-Par, $8) $160,000

To journalize the February 14 transaction, we would make the following entry:

Feb 14

Cash $2,250,000

Preferred Stock (2%, $50) $450,000

To journalize the August 30 transaction, we would make the following entry:

Aug 30

Cash $560,000

Preferred Stock (2%, $50) $100,000

Note that the account titles used in the journal entries may vary depending on the Chart of Accounts used by the company. These entries are just an example of how the transactions could be recorded.