Professional Products Inc., a wholesaler of office products, was organized on Fe

Question

Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of so,000 shares of preferred 4% stock, $55 par and 450,000 shares of $25 par common stock. The following selected transactions were completed during the first year of Cperations: Journalize the transactions Feb. S. Issued 150,000 shares of common stock at par for cash. Feb. 5 Feb. 5. Issued 350 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation Feb. 5. Apr.9. Issued 20,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $94,000, $511,000, and $115,000, respectively If an amount box does not require an entry, leave it blank Api 9 June 14. Issued 23,000 shares of preferred stock at $69 for cash. Previous Next Check My Work

Explanation / Answer

1 Journal Entries of Professional Products Inc. Date Account Titles and Explanation Debit Credit In ($) 2016 February, 5 Cash a/c       3,750,000 To Common Stock a/c        3,750,000 (Issued 1,50,000 shares of common stock for $25 per share ) February, 5 Legal Fees Payable a/c              8,750 To Common Stock a/c               2,200 (Issued 350 shares of common stock at par in payment of legal fees ) April, 9 Land a/c            94,000 Buildings a/c          511,000 Equipment a/c          115,000 To Common Stock a/c           500,000 Premium on issue of stock a/c           220,000 (Issued 20,000 shares of common stock at par in exchange for assets ) June, 14 Cash a/c       1,587,000 To Common Stock a/c        1,265,000 Premium on issue of stock a/c           322,000 (Issued 23,000 shares of preferred stock for $69 per share )

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