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FINANCIAL ACCOUNTING
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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2. Cash x 352,800 X Land V 11,300 X Buildings x 230,200 X Paid-In Capital in Excess of Par-Preferred Stock v 13,200
Transcribed Image Text:2. Cash x 352,800 X Land V 11,300 X Buildings x 230,200 X Paid-In Capital in Excess of Par-Preferred Stock v 13,200
Willow Creek Nursery, with an authorization of 27,000 shares of preferred stock and 390,000 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 352,800 Land 113,000 Buildings 230,200 Preferred 2% Stock, $100 par 330,000 Paid-In Capital in Excess of Par-Preferred Stock 13,200 Common Stock, $40 par 252,000 Paid-In Capital in Excess of Par-Common Stock 100,800 696,000 696,000 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. Preferred Stock x 27,000 x 1. Common Stock v 390,000 x Feedback V Check My Work What did the company receive? At what value does preferred and common stock have to be recorded? Cash X 352,800 2.
Transcribed Image Text:Willow Creek Nursery, with an authorization of 27,000 shares of preferred stock and 390,000 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 352,800 Land 113,000 Buildings 230,200 Preferred 2% Stock, $100 par 330,000 Paid-In Capital in Excess of Par-Preferred Stock 13,200 Common Stock, $40 par 252,000 Paid-In Capital in Excess of Par-Common Stock 100,800 696,000 696,000 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. Preferred Stock x 27,000 x 1. Common Stock v 390,000 x Feedback V Check My Work What did the company receive? At what value does preferred and common stock have to be recorded? Cash X 352,800 2.
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