Rogers & Hart formed a corporation and had the following organization costs and stock transactions during the year:Transactions:June30Incurred the following costs of incorporation: Incorporation fees$ 900 Attorneys’ fees6,000 Promotion fees8,000July15Issued 8,000 shares of $10 par common stock for $82,000 cash.Aug.1Received subscriptions for 10,000 shares of $10 par common stock for $101,500. 15Issued 10,000 shares of $10 par common stock in exchange for a building with a fair market value of $104,800. 31Received a payment of $51,500 for the common stock subscription.Sept.3Purchased 1,000 shares of its own $10 par common stock for $11 a share. 18Received the balance in full for the common stock subscription and issued the stock. 30Sold 500 shares of its treasury stock for $11.70 a share.Oct.15Issued 4,000 shares of $25 par, 8% preferred stock in exchange for land with a fair market value of $105,000. 31Sold 500 shares of its treasury stock for $10.50 a share. Required: Prepare general journal entries for these transactions.

1. Pre- preliminary Expense = Preliminary expense are incurred before commencement of the…

Answered: Rogers & Hart formed a corporation and…

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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Rogers & Hart formed a corporation and had the following organization costs and stock transactions during the year:

Transactions:
June	30	Incurred the following costs of incorporation:
		Incorporation fees	$ 900
		Attorneys’ fees	6,000
		Promotion fees	8,000
July	15	Issued 8,000 shares of $10 par common stock for $82,000 cash.
Aug.	1	Received subscriptions for 10,000 shares of $10 par common stock for $101,500.
	15	Issued 10,000 shares of $10 par common stock in exchange for a building with a fair market value of $104,800.
	31	Received a payment of $51,500 for the common stock subscription.
Sept.	3	Purchased 1,000 shares of its own $10 par common stock for $11 a share.
	18	Received the balance in full for the common stock subscription and issued the stock.
	30	Sold 500 shares of its treasury stock for $11.70 a share.
Oct.	15	Issued 4,000 shares of $25 par, 8% preferred stock in exchange for land with a fair market value of $105,000.
	31	Sold 500 shares of its treasury stock for $10.50 a share.

Required:

Prepare general journal entries for these transactions.

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