EX 13-8 Issuing stock Baird Products Inc., a wholesaler of office products, was

Question

EX 13-8 Issuing stock Baird Products Inc., a wholesaler of office products, was organized on January 30 of the current year, with an authorization of 80,000 shares of 2% preferred stock, s75 r and 800,000 shares of $20 par common stock. The following selected transactions were completed during the first year of operations: Jan. 30. Issued 300,000 shares of common stock at par for cash. 31. Issued 750 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. Feb. 21. Issued 32,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $150,000, $460,000, and $90,000, respec tively Mar. 2. Issued 15,000 shares of preferred stock at $77.50 for cash. Journalize the transactions.

Explanation / Answer

JOURNAL ENTRIES DATE ACCOUNTS TITLE AND EXPLANATIONS DEBIT $ CREDIT $ 30-Jan Cash Account Dr. 6,000,000          Common Stock (300,000 share 220) 6,000,000 31-Jan Organisation expense Dr. 15,000          Common Stock 15,000 21-Feb Land Dr. 150000 Building Dr. 460000 Equipment Dr. 90000        Common Stock 640,000        Additonal paid in Common Stock Capital 60,000 2-Mar Cash (15000 shares @77.50) 1,162,500       2% Preferred Stock 1,125,000       Additional Paid in Preferred Capital 37,500

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