operations on Oct 1, 2019 It is authorized to issue 20,000 shares f value prefer

Question

operations on Oct 1, 2019 It is authorized to issue 20,000 shares f value preferred stock and 300,000 shares of $4 par value Commion Stock ons for the first semester were as follows 1 Issued 50,000 shares of common stock at $5 per share 27 Issued 4,000 shares of common stock to attorneys in payment of their bill of services performed in helping the company organize Nov. 24 Issued 24,000 shares of common stock for land and a warehouse The land had land and FMV (Fair Market Value) of $25,000 and the warehouse's FMV was $100,000 (Hint l warehouse are two separate assets) Dec. 12 Issued 10,000 shares of preferred stock for cash at $55 per share Dec. 31 Determined that Net Income for the year was $40,000 Prepare general journal entries to record the above transactions GENERAL JOURNAL CREDIT DEBIT DATE

Explanation / Answer

Note: Par value of the preferred stock is not showing so assumed $ 50, if any other please comment i will correct the amount of entry

Journal Entries Date Account Title and explanation Debit Credit Cash $               2,50,000 Oct-01         To Common Stock - Par Value (50000 Shares X $ 4 per shares) $                 2,00,000         To Excess on par Value - Common (50000 Shares X 1 Per Shares) $                     50,000 (To Record the issuance of the commons Stock) ÓCt , 027 Account Payable $                  30,000         To Common Stock - Par Value (4000 Shares X $ 4 per shares) $                     16,000         To Excess on par Value - Common (Balance Amount) $                     14,000 (To Record the issuance of the commons Stock against AP) Nov , 24 Land $                  25,000 Warehouse $               1,00,000         To Common Stock - Par Value (24000 Shares X $ 4 per shares) $                     96,000         To Excess on par Value - Common (Balance Amount) $                     29,000 (To Record the issuance of Common Stock against land and warehouse) Dec , 12 Cash (10000 Shares X 55 ) $               5,50,000         To Preferred Shares Capital - Par Value (10000 Shares X $ 50 per shares) $                 5,00,000         To Excess on par Value - Preferred Shares (50000 Shares X 1 Per Shares) $                     50,000 (To Record the issuance of the Preferred Stock) Dec-31              "No Journal Entry) $                            -   $                              -  

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