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
Related questions
Question
Please answer competely
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education