Ludwig Inc. began a very lucrative consulting operation on October 1, 2014. They are authorized to issue 400,000 shares of $4.00 cumulative preferred shares. They are also authorized to issue 600,000 common shares. a. October 10 : 14,000 of the preferred shares were issued for a total of $19,600 cash. b. October 11 : Gave the corporation's promoters 14,000 common shares for their services in organizing the corporation. The directors valued the services at $57,000. c. October 17 : 6,000 common shares were issued in exchange for land valued at $24,000. d. October 24 :5,000 of the common shares were issued for a total of $50,000 cash. e. October 25 : Issued 12,000 preferred shares at $5.61 per share for cash. f. October 31: In addition to the declaration of the annual dividend on the preferred shares, dividends of $47,500 were declared on the common shares today. Prepare journal entries for the above transactions, entering the transaction letter as the explanation. Also, enter dates in the format dd/mmm (ie. 15/Jan). General Journal Page GJ1 Date Account/Explanation F Debit Credit + =
Ludwig Inc. began a very lucrative consulting operation on October 1, 2014. They are authorized to issue 400,000 shares of $4.00 cumulative preferred shares. They are also authorized to issue 600,000 common shares. a. October 10 : 14,000 of the preferred shares were issued for a total of $19,600 cash. b. October 11 : Gave the corporation's promoters 14,000 common shares for their services in organizing the corporation. The directors valued the services at $57,000. c. October 17 : 6,000 common shares were issued in exchange for land valued at $24,000. d. October 24 :5,000 of the common shares were issued for a total of $50,000 cash. e. October 25 : Issued 12,000 preferred shares at $5.61 per share for cash. f. October 31: In addition to the declaration of the annual dividend on the preferred shares, dividends of $47,500 were declared on the common shares today. Prepare journal entries for the above transactions, entering the transaction letter as the explanation. Also, enter dates in the format dd/mmm (ie. 15/Jan). General Journal Page GJ1 Date Account/Explanation F Debit Credit + =
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ludwig Inc. began a very lucrative consulting operation on October 1, 2014. They are authorized to issue 400,000 shares of $4.00 cumulative preferred shares. They are also
authorized to issue 600,000 common shares.
a. October 10 : 14,000 of the preferred shares were issued for a total of $19,600 cash.
b. October 11 : Gave the corporation's promoters 14,000 common shares for their services in organizing the corporation. The directors valued the services at $57,000.
c. October 17:6,000 common shares were issued in exchange for land valued at $24,000.
d. October 24 :5,000 of the common shares were issued for a total of $50,000 cash.
e. October 25: Issued 12,000 preferred shares at $5.61 per share for cash.
f. October 31 : In addition to the declaration of the annual dividend on the preferred shares, dividends of $47,500 were declared on the common shares today.
Prepare journal entries for the above transactions, entering the transaction letter as the explanation. Also, enter dates in the format dd/mmm (ie. 15/Jan).
General Journal
Page GJ1
Date
Account/Explanation
F Debit
Credit
+
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