3. The Vogel and Wallis Corporation is authorized to issue 15,000 shares of 10%,

Question

3. The Vogel and Wallis Corporation is authorized to issue 15,000 shares of 10%, $50 par value preferred stock and 60,000 shares of $5 par value common stock. Following is a narrative of selected transactions completed during the first month after incorporation The incorporators accepted subscriptions for 5,000 shares of preferred stock at $55 per share. Subscribers of the preferred stock paid $75,000 cash and land valued at $200,000 in full settlement of the subscriptions June 1 12 GENERAL JOURNAL Page 1 Post Ref Date Description Debit Credit

Explanation / Answer

Particulars Debit Credit Jun-01 Cash      75,000.00 Land 2,00,000.00          10%Preferred stock     2,75,000.00 (To record the payment receipt in exchange of preferred stock)

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