**Issuing Stock**Willow Creek Nursery, with an authorization of 75,000 shares of preferred stock and 200,000 shares of common stock, completed several transactions involving its stock on October 1, the first day of operations. The trial balance at the close of the day follows:- **Cash**: $3,780,000- **Land**: $840,000- **Buildings**: $2,380,000- **Preferred 1% Stock, $80 par**: $2,800,000- **Paid-In Capital in Excess of Par—Preferred Stock**: $420,000- **Common Stock, $30 par**: $3,600,000- **Paid-In Capital in Excess of Par—Common Stock**: $180,000Total debits: $7,000,000Total credits: $7,000,000All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings.**Journalize the entries to record the (1) common and (2) preferred stock transactions summarized in the trial balance. If an amount box does not require an entry, leave it blank.**1. - [Dropdown for account] - [Amount box] - [Dropdown for account] - [Amount box]2. - [Dropdown for account] - [Amount box] - [Dropdown for account] - [Amount box]

Journal is the initial step in recording the financial transaction, date wise as per the dual entity concept. These recorded entries helps in preparing ledger accounts which ahead helps in preparing financial statements. In the given problem, journal related to stock issued during the year needs to be done.Journal of Willow Creek Nursery Date Account title & Explanation Debit ($) Credit ($) 1. Cash A/c Dr. 3,780,000 Common stock A/c 3,600,000 Paid in Capital in excess of par-Common Stock A/c 180,000 (To record the stock issued at premium) 2. Building A/c Dr. 2,380,000 Land A/c Dr. 840,000 Preferred Stock 2,800,000 Paid in Capital in excess of par-Preferred Stock 420,000 (To record the preferred stock issued at premium in exchange of building and asset)

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Issuing Stock Willow Creek Nursery, with an authorization of 75,000 shares of preferred stock and 200,000 shares of common stock, completed several transactions involving its stock on October 1, the first day of operati The trial balance at the close of the day follows: Cash 3,780,000 Land 840,000 Buildings 2,380,000 Preferred 1% Stock, $80 par 2,800,000 Paid-In Capital in Excess of Par-Preferred Stock 420,000 Common Stock, $30 par 3,600,000 Paid-In Capital in Excess of Par-Common Stock 180,000 7,000,000 7,000,000 All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings. Journalize the entries to record the (1) common and (2) preferred stock transactions summarized in the trial balance. If an amount box does not require an entry, leave it blank. 1. 2.

Issuing Stock Willow Creek Nursery, with an authorization of 75,000 shares of preferred stock and 200,000 shares of common stock, completed several transactions involving its stock on October 1, the first day of operati The trial balance at the close of the day follows: Cash 3,780,000 Land 840,000 Buildings 2,380,000 Preferred 1% Stock, $80 par 2,800,000 Paid-In Capital in Excess of Par-Preferred Stock 420,000 Common Stock, $30 par 3,600,000 Paid-In Capital in Excess of Par-Common Stock 180,000 7,000,000 7,000,000 All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings. Journalize the entries to record the (1) common and (2) preferred stock transactions summarized in the trial balance. If an amount box does not require an entry, leave it blank. 1. 2.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter12: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 18E: Stockholders' Equity section of balance sheet The following accounts and their balances appear in...

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