Grouper Corporation began operations on April 1 by issuing 54,000 shares of $5 par value common stock for cash at $18 per share. On April 19, it issued 1,900 shares of common stock to attorneys in settlement of their bill of $25,800 for organization costs. In addition, Grouper issued 1,550 shares of $1 par value preferred stock for $7 cash per share. Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Grouper Corporation began operations on April 1 by issuing 54,000 shares of $5 par value common stock for cash at $18 per share. On April 19, it issued 1,900 shares of common stock to attorneys in settlement of their bill of $25,800 for organization costs. In addition, Grouper issued 1,550 shares of $1 par value preferred stock for $7 cash per share. Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Grouper Corporation began operations on April 1 by issuing 54,000 shares of $5 par value common stock for cash at $18 per share.
On April 19, it issued 1,900 shares of common stock to attorneys in settlement of their bill of $25,800 for organization costs. In
addition, Grouper issued 1,550 shares of $1 par value preferred stock for $7 cash per share.
Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded. (List all debit entries before
credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
(To record issuance of common stock for attorney's fees)
(To record issuance of Preferred stock for cash)
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