Kathleen Battle Corporation was organized on January 1, 2014. It is authorized t
ID: 2477479 • Letter: K
Question
Kathleen Battle Corporation was organized on January 1, 2014. It is authorized to issue 10,410 shares of 8%, $63 par value preferred stock, and 550,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.
Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 10
Mar. 1
April 1
May 1
Aug. 1
Sept. 1
Nov. 1
Jan. 10 Issued 80,820 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,580 shares of preferred stock for cash at $112 per share. Apr. 1 Issued 24,400 shares of common stock for land. The asking price of the land was $91,790; the fair value of the land was $80,820. May 1 Issued 80,820 shares of common stock for cash at $9 per share. Aug. 1 Issued 10,410 shares of common stock to attorneys in payment of their bill of $50,420 for services rendered in helping the company organize. Sept. 1 Issued 10,410 shares of common stock for cash at $11 per share. Nov. 1 Issued 1,580 shares of preferred stock for cash at $113 per share.Explanation / Answer
Ans;
Journal entries ;
Jan 10 cash debit. 561400 (80200 × 7)
. To Commin stock . 160400 (80200 × 2)
To share premium. 401000
March 1 cash 656010 (5910 × 111)
To 8% preferred stock. 5910 ×72
To share premium. 5910 × 39
April 1 land debit 80200
To common stock .( 24560 × 2 ) 49120
To premium. 31080
May 1 cash debit 641600. (80200 × 8).
To Common stock. 160400
To share premium. 481200
Aug 1 preliminary expenses 50650
To common stock. 20900 (10450 ×2)
To share premuum. 29700
Sept 1 cash debit 104500. (10450 × 10)
To common stock 20900 (10450 ×2)
To share premium. 83600
Nov1. Cash debit (1460 ×114) 166440
To 8%preferred stock. (1460 ×72 ) 105120
To share premium. 61320
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.