A corporation was organized on January 1 of the current year, with an authorizat

Question

A corporation was organized on January 1 of the current year, with an authorization of 20,000 shares of $4 preferred stock, $12 par, and 100,000 shares of $3 par common stock.

The following selected transactions were completed during the first year of operations:

Jan. 3 Issued 15,000 shares of common stock at $23 per share for cash.

31. Issued 200 shares of common stock at par to an attorney in payment of legal fes for organizing the corporation. The value of the stock at the time of payment was $25 per share.

Feb. 24 Issued 20,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $65,000, $120,000, and $45,000 respectively.

Mar. 15 Issued 2,000 Shares of preferred stock at $56 for cash.

Journalize the above transactions. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".

Explanation / Answer

jan 3 .cash a/c dr 345000

To shares of common stock 345000

jan 31 cash a/c dr 5000

to common stock shares 5000

feb 24 land a/c dr 65000

building a/c dr 120000

equipment dr 45000

to common stock shares 230000

mar 15 cash a/c dr 112000

to prefered stock shares 112000

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