Alpha Company was organized on January 1, 2019. It is authorized to issue 10,000 shares of 8%, $50 par value preference shares, and 500,000 shares of no-par ordinary shares with a stated value of $2 per share. The following share transactions were completed during the first year. Jan. 05: Issued 70,000 ordinary shares for cash at $6 per share. Mar. 1: Issued 4,500 preference shares for cash at $110 per share. Apr. 1: Issued 24,000 ordinary shares for land. The asking price of the land was $90,000; the fair value of the land was $75,000. Aug. 1: Issued 10,000 ordinary shares to attorneys in payment of their bill of $47,000 for services rendered in helping the company organize. Dec. 1:Issued 1,000 preference shares for cash at $112 per share. Required:Prepare the journal entries to record
Alpha Company was organized on January 1, 2019. It is authorized to issue 10,000 shares of 8%, $50 par value preference shares, and 500,000 shares of no-par ordinary shares with a stated value of $2 per share. The following share transactions were completed during the first year. Jan. 05: Issued 70,000 ordinary shares for cash at $6 per share. Mar. 1: Issued 4,500 preference shares for cash at $110 per share. Apr. 1: Issued 24,000 ordinary shares for land. The asking price of the land was $90,000; the fair value of the land was $75,000. Aug. 1: Issued 10,000 ordinary shares to attorneys in payment of their bill of $47,000 for services rendered in helping the company organize. Dec. 1:Issued 1,000 preference shares for cash at $112 per share. Required:Prepare the journal entries to record
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alpha Company was organized on January 1, 2019. It is authorized to issue 10,000 shares of 8%, $50 par value preference shares , and 500,000 shares of no-par ordinary shares with a stated value of $2 per share. The following share transactions were completed during the first year.
Jan. 05: Issued 70,000 ordinary shares for cash at $6 per share.
Mar. 1: Issued 4,500 preference shares for cash at $110 per share.
Apr. 1: Issued 24,000 ordinary shares for land. The asking price of the land was $90,000; the fair value of the land was $75,000.
Aug. 1: Issued 10,000 ordinary shares to attorneys in payment of their bill of $47,000 for services rendered in helping the company organize.
Dec. 1:Issued 1,000 preference shares for cash at $112 per share.
Required:Prepare the journal entries to record the above transactions.
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