During Its First Year of Operations, Cole's Electronics Inc

question 113

Essay

During its first year of operations, Cole's Electronics Inc. completed the following transactions relating to shareholders' equity.
Jan. 5: Issued 1,000,000 shares of common stock for $25 per share.
Feb. 12: Issued 20,000 shares of common stock to accountants for professional services.
The articles of incorporation authorize 5,000,000 shares of common stock with a par value of $1 per share and 1,000,000 preferred shares with a par value of $100 per share.
Required:
Record the above transactions in general journal form.

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Definitions:

Quantitative Characteristics

Measurable attributes that can be quantified and analyzed numerically, often used in statistical and financial analysis.

Decision-making Process

The systematic approach of identifying and evaluating choices to come to a conclusion or course of action.

Tactical Decision

Short-term decisions that are more specific and detailed than strategic decisions, focusing on the management of daily operations rather than long-term goals.

Costing System

A method for assigning costs to products or services, which can be based on activities, processes, or direct allocation.