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Whispering Winds Corporation recently hired a new accountant with extensive experience in accounting for partnerships....

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Accounting

Whispering Winds 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
Capital Stock
216,000
(Issued 12,000 shares of $15 par value common stock at $18 per share)
10 Cash
720,000
Capital Stock
720,000
(Issued 12,000 shares of $50 par value preferred stock at $60 per share)
15 Capital Stock
22,500
Cash
22,500
(Purchased 1,500 shares of common stock for the treasury at $15 per share)
31 Cash
3,200
Capital Stock
2,000
Gain on Sale of Stock
1,200
Treasury Stock
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