(Learning Objectives 2, 6: Account for stock issuance; report stockholders’equity) The partners who own Crew Kayaks Co. wished to avoid the unlimited personalliability of the partnership form of business, so they incorporated as Crew Kayaks, Inc. Thecharter from the state of Nevada authorizes the corporation to issue 125,000 shares of $15 parcommon stock. In its first month, Crew Kayaks, Inc., completed the following transactions:Oct 6 Issued 600 shares of common stock to the promoter forassistance with issuance of common stock. The promotionalfee was $12,000. Debit Organization Expense.9 Issued 10,000 shares of common stock to Lucy Littleton and18,000 shares to Danielle Dunaway in return for cash equal to thestock’s market value of $18 per share. The two women werepartners in Crew Kayaks Co.26 Issued 900 shares of common stock for $21 cash per share.Requirements1. Record the transactions in the journal.2. Prepare the stockholders’ equity section of the Crew Kayaks, Inc., balance sheet at January 31,2019. The ending balance of Retained Earnings is $95,000.
(Learning Objectives 2, 6: Account for stock issuance; report
equity
liability of the partnership form of business, so they incorporated as Crew Kayaks, Inc. The
charter from the state of Nevada authorizes the corporation to issue 125,000 shares of $15 par
common stock. In its first month, Crew Kayaks, Inc., completed the following transactions:
Oct 6 Issued 600 shares of common stock to the promoter for
assistance with issuance of common stock. The promotional
fee was $12,000. Debit Organization Expense.
9 Issued 10,000 shares of common stock to Lucy Littleton and
18,000 shares to Danielle Dunaway in return for cash equal to the
stock’s market value of $18 per share. The two women were
partners in Crew Kayaks Co.
26 Issued 900 shares of common stock for $21 cash per share.
Requirements
1. Record the transactions in the journal.
2. Prepare the stockholders’ equity section of the Crew Kayaks, Inc., balance sheet at January 31,
2019. The ending balance of
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