Answer Happy

Partners Meeks and Olsen wish to avoid the unlimited personal liability of the partnership form of business, so they are incorporating the company as M & O Services, Inc. The charter from the state of Texas authorizes the corporation to issue 70,000 shares of 2 percent, $100 par preferred stock and 230,000 shares of no-par common stock. In its first month, M & O Services, Inc., completed the following transactions: (Click the icon to view the transactions.) Read the requirements, Requirement 1. Record the transactions in the joumal. (Record debits first, then credits. Exclude explanations from any joumal entries.) Jan 3: Issued 5,900 shares of common stock to Meeks and 3,400 shares to Olsen, both for cash of $15 per share. (Prepare a single journal entry for the issuance to both individuals.) Journal Entry Accounts Date Debit Credit Jan 3 More info Jan 3 Issued 5,900 shares of common stock to Meeks and 3,400 shares to Olsen, both for cash of $15 per share. 12 Issued 1,100 shares of preferred stock to acquire a patent with a market value of $110,000. 22 Issued 1,000 shares of common stock to other investors for $16 cash per share. Jan 12: Issued 1,100 shares preferred stock to acquire a patent with a market value of $110.000. Journal Entry Accounts Date Debit Credit Jan 12 Print Done
Jan 22: Issued 1,000 shares of common stock to other investors for $16 cash per share. Journal Entry Date Accounts Debit Credit Jan 22 Requirement 2. Prepare the stockholders' equity section of the M & O Services, Inc.'s balance sheet at December 31. The ending balance of Retained earnings is $41,000. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.) Stockholders' Equity Paid-in capital:
Jan 22: Issued 1,000 shares of common stock to other investors for $16 cash per share. Journal Entry Date Accounts Debit Credit Jan 22
Journai Entry Date Accounts Debit Credit Jan 3 Cash Jan 12: Issue Common stock a market value of $110,000. Dividends Date Debit Credit Jan 12 Paid-in capital in excess of par-common Patent Preferred stock Jan 22: Issue Retained earnings j cash per share. Treasury stock
Requirement 2. Prepare the stockholders' equity section of the M & O Services, Inc.'s balance sheet at December 31. The ending balance of Retained earnings is $41,000. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.) Stockholders' Equity Paid-in capital: Total stockholders' equity
Stockholders' Equity Paid-in capital: Common stock, no-par, Less: Treasury stock Preferred stock, 2%, $100 par, Retained earnings Total paid-in capital
Requirement 2. Prepare the stockholders' equity section of the M & O Services, Inc.'s balance sheet at December 31. The ending balance of Retained earnings is $41,000. section of the balance sheet.) Stockholders' Equity Paid-in capital: shares at cost shares authorized, Total stockholders' equity shares issued and outstanding