Based on the given entries, the incorrect red box to be fixed is the Aug 1 entry of $0.
What should the Pain in capital - Common stock account look like?
From the given transactions, the entries in the Paid in Capital in excess of stated value - Common Stock should be:
- Credit ⇒ Jan. 10 $231,000
- Credit ⇒ Apr. 1 $9,500
- Credit ⇒ May. 1 $114,000
- Credit ⇒ Sep. 1 $42,000
- Credit ⇒ Dec 31 Bal $396,500
There should be no entry on Aug 1 of $0 because the common stock issued matches the attorney fees of $36,000.
Find out more on excess paid in capital at https://brainly.com/question/25758206.
