Issuing Stock Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 100,000 shares of preferred 1% stock, $75 par and 300,000 shares of $10 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 115,000 shares of common stock at par for cash. Cash Common Stock Feb. 5. Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. Feb. 5. Organizational Expenses Common Stock Apr. 9. Issued 19,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $35,000, $189,000, and $42,000, respectively. Apr. 9. Land Buildings Equipment Common Stock Paid-In Capital in Excess of Par-Common Stock Feedback Record 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 capital equity 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 15,000 shares of preferred stock at $83 for cash. June 14. Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock
Issuing Stock
Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 100,000 shares of preferred 1% stock, $75 par and 300,000 shares of $10 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 115,000 shares of common stock at par for cash.
| Cash |
| Common Stock |
Feb. 5. Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
| Feb. 5. | Organizational Expenses |
| Common Stock |
Apr. 9. Issued 19,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $35,000, $189,000, and $42,000, respectively.
| Apr. 9. | Land |
| Buildings | |
| Equipment | |
| Common Stock | |
| Paid-In Capital in Excess of Par-Common Stock |
Record 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 capital equity 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 15,000 shares of preferred stock at $83 for cash.
| June 14. | Cash |
| Preferred Stock | |
| Paid-In Capital in Excess of Par-Preferred Stock |
Step by step
Solved in 2 steps
