Issuing StockProfessional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 125,000 shares of preferred3% stock, $65 par and 400,000 shares of $20 par common stock. The following selected transactions were completed during the first year of operations:Journalize the transactions.If an amount box does not require an entry, leave it blank.Feb. 5. Issued 150,000 shares of common stock at par for cash.Feb. 5. CashCommon StockFeedback✓ Check My WorkWhat is the company receiving and at what price is the stock being issued?Feb. 5. Issued 500 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.Feb. 5. Organizational ExpensesCommon StockFeedbackCheck My WorkRecall that stock may be issued for reasons other than to receive cash. What are these shares paying for? Apr. 9. Issued 21,500 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $78,000, $427,000, and $97,000,respectively.Apr. 9. Land✓BuildingsEquipmentCommon StockPaid-In Capital in Excess of Par-Common StockFeedback✓✔Check My WorkRecord the assets, and increase the common stock account by the par value of the shares. Record any amount above par in a separate paid-in capitalequity account.Recall that shares of stock can be issued to acquire assets. At what value must the preferred stock and common stock accounts be recorded?June 14. Issued 20,000 shares of preferred stock at $77 for cash.June 14, Cash✓Preferred StockPaid-In Capital in Excess of Par-Preferred Stock✓

Journal entry is one of the processes of the accounting cycle. In the journal entry, the…

Issuing Stock Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 125,000 shares of preferred 3% stock, $65 par and 400,000 shares of $20 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions. If an amount box does not require an entry, leave it blank. Feb. 5. Issued 150,000 shares of common stock at par for cash. Feb. 5. Cash ✓ Common Stock Feedback Check My Work What is the company receiving and at what price is the stock being issued?

Issuing Stock Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 125,000 shares of preferred 3% stock, $65 par and 400,000 shares of $20 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions. If an amount box does not require an entry, leave it blank. Feb. 5. Issued 150,000 shares of common stock at par for cash. Feb. 5. Cash ✓ Common Stock Feedback Check My Work What is the company receiving and at what price is the stock being issued?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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