Reference no: EM13840117

(1)   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 $14 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.

(2) 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.

(3) 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.

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