Journalize the Following Stock Transactions for Rick Corporation $\text {July\quad 22 }$

question 32

Essay

Journalize the following stock transactions for Rick Corporation.
$\text {July\quad 22 }$ $\quad$$\text {Issued 10,000 shares of \(\$ 5\) par common stock for \(\$ 43,000 \mathrm { cash }\).}$
$\quad$ $\quad$$\text {28}$ $\quad$ $\text { Issued 6, 000 shares of \(\$ 5\) par common stock for \(\$ 33,000\) cash.}$
$\quad$ $\quad$$\text {31 }$ $\quad$$\text {Issued 4,000 shares of \(\$ 12\) par, \(7 \%\) preferred stock for \(\$ 53,000\) cash.}$

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Definitions:

Dishonored Note

A dishonored note is a promissory note that has not been paid by the maker at its maturity date.

Direct Write-Off Method

An accounting method where bad debts are charged against income at the time they are deemed irrecoverable, rather than being anticipated in advance.

Interest

Interest is the cost paid for borrowing money, typically expressed as a percentage of the amount borrowed over a certain period of time.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the appropriate period.