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Gilliam Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because...

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Accounting

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Gilliam Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review his textbooks on the topic of corporation accounting. During the first month, the accountant made the following entries for the corporation's capital stock. May 2 Cash 153,400 153,400 Capital Stock (Issued 11,800 shares of $10 par value common stock at $13 per share) 10 Cash 708,000 708,000 15 21,750 Capital Stock (Issued 11,800 shares of $50 par value preferred stock at $60 per share) Capital Stock Cash (Purchased 1,450 shares of common stock for the treasury at $15 per share) Cash 21,750 31 3,200 Capital Stock 2,000 1,200 Gain on Sale of Stock (Sold 200 shares of treasury stock at $16 per share) On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit >

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