Answer:
Tamarisk, Inc.
Journal Entries:
April 1:
Debit Cash Account $1,020,000
Credit Common Stock $204,000
Credit Paid-in Capital In Excess $816,000
To record the issue of 51,000 $4 par value common stock shares at $20 per share.
April 19:
Debit Organization Expense $26,300
Credit Common Stock $8,000
Credit Paid-in Capital In Excess - Common Stock $18,300
To record the issue of 2,000 shares in settlement of attorneys' organization costs.
April 19:
Debit Cash Account $5,400
Credit Preferred Stock $1,800
Credit Paid-in Capital In Excess -Preferred Stock $3,600
To record the issue of 900 shares of $2 par value preferred stock for $6 cash.
Explanation:
Tamarisk, Inc. uses the general journal entries to record business transactions as they occur on a daily basis. Journal entries are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.
