I need to see if my work is correct! Please and Thank you! (Please see BOLD entries) Dinah Soars, Biff Wellington and Duane Pipe are the stockholders…

I need to see if my work is correct! Please and Thank you!

(Please see BOLD entries)

Dinah Soars, Biff Wellington and Duane Pipe are the stockholders of Sharpe Incorporated. The charter of the corporation authorized 500,000 shares of $5 par common stock, and 100,000 shares of $30 par, 3%, preferred stock. As of January 1, 2018, there were 25,000 shares of common stock issued and outstanding and 4,000 shares of preferred stock issued and outstanding.

Jan 1 Issued 13,000 shares of $5 par common stock at $19, receiving cash.

Jan 1 Issued 6,700 shares of $30 par, 3%, preferred stock at $69 for cash.

Feb 1 Purchased equipment for $220,000, paying $20,000 cash and financing the remainder with a 180-day, 5% note payable.

Mar 15 Purchased land for $352,000 by issuing 18,000 shares of common stock.

Mar 31 Purchased a two-year insurance policy for $39,000.

May 1 Purchased 1,600 shares of the company’s own common stock at $23 per share.

May 31 Issued $1,000,000 of 8-year, 7% bonds with interest payable semiannually. The amount of cash received was $1,087,936.

July 30 Paid the amount due on the note payable signed on February 1.

Aug 1 Sold 500 shares of treasury common stock purchased on May 1 for $26 per share

My answer:

Dr. Cash 13,000

Cr. Treasury Stock 11,500

Cr. Paid in Capital-Treasury Stock 1,500

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Assignment Solutions