Journal entries for issuing additional shares


Problem:

Record the following selected transactions in general journal form for Sun Orthopedic Clinic, Inc. Include a brief explanation of the transaction as part of each journal entry.

Oct. 1 The clinic issued 4,000 additional shares of capital stock to Doctor Soges at $50 per share.

Oct. 4 The clinic purchased diagnostic equipment. The equipment cost $75,000, of which $25,000 was paid in cash; a note payable was issued for the balance.

Oct. 12 Issued a check for $9,000 in full payment of an account payable to Zeller Laboratories.

Oct. 19 Purchased surgical supplies for $2,600. Payment is not due until November 28.

Oct. 25 Collected a $24,000 account receivable from Health One Insurance Company.

Oct. 30 Declared and paid a $300,000 cash dividend to stockholders.

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Accounting Basics: Journal entries for issuing additional shares
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