BUS 208 - Principles of Accounting II Homework Assignment 2 Chapter 13 Plachy Products, Inc., a wholesaler of office products, was organized on February 20 of the current year, with an authorization of 55,000 shares of 2% preferred stock, $65 par and 500,000 shares of $30 par common stock. The following selected transactions were completed during the first year of operations: February 20 Issued 120,000 shares of common stock at par for cash. February 26 Issued 860 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. March 6 Issued 16,000 shares of common stock in exchange for land, buildings, and equipment with fair market values of $70,000, $430,000 and $50,000, respectively. April 29 Issued 18,500 shares of preferred stock at $70 for cash. Journalize the transactions.

BUS 208 - Principles of Accounting II Homework Assignment 2 Chapter 13 Plachy Products, Inc., a wholesaler of office products, was organized on February 20 of the current year, with an authorization of 55,000 shares of 2% preferred stock, $65 par and 500,000 shares of $30 par common stock. The following selected transactions were completed during the first year of operations: February 20 Issued 120,000 shares of common stock at par for cash. February 26 Issued 860 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. March 6 Issued 16,000 shares of common stock in exchange for land, buildings, and equipment with fair market values of $70,000, $430,000 and $50,000, respectively. April 29 Issued 18,500 shares of preferred stock at $70 for cash. Journalize the transactions.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 12.8EX: Issuing stock Professional Products Inc., a wholesaler of office products, was organized on February...

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

BUS 208 - Principles of Accounting II
Homework Assignment 2
Chapter 13
Plachy Products, Inc., a wholesaler of office products, was organized on February 20 of the current
year, with an authorization of 55,000 shares of 2% preferred stock, $65 par and 500,000 shares of $30
par common stock. The following selected transactions were completed during the first year of
operations:
February 20
Issued 120,000 shares of common stock at par for cash.
February 26
Issued 860 shares of common stock at par to an attorney in payment of
legal fees for organizing the corporation.
March 6
Issued 16,000 shares of common stock in exchange for land, buildings, and
equipment with fair market values of $70,000, $430,000 and $50,000, respectively.
April 29
Issued 18,500 shares of preferred stock at $70 for cash.
Journalize the transactions.

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