Sweet Corporation was organized on January 1, 2020. It is authorized to issue 9,200 shares of 8%, $100 par value preferred stock, and 538,600 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.Jan. 10 Issued 80,120 shares of common stock for cash at $6 per share.Mar. 1 Issued 5,470 shares of preferred stock for cash at $112 per share.Apr. 1 Issued 24,910 shares of common stock for land. The asking price of the land was $90,180; the fair value of the land was $80,120.May 1 Issued 80,120 shares of common stock for cash at $9 per share.Aug. 1 Issued 9,200 shares of common stock to attorneys in payment of their bill of $51,900 for services rendered in helping the company organize.Sept. 1 Issued 9,200 shares of common stock for cash at $11 per share.Nov. 1 Issued 1,090 shares of preferred stock for cash at $113 per share.Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

When shares of the company are being issued at a value more than par value, then it means shares are…

Answered: Sweet Corporation was organized on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Sweet Corporation was organized on January 1, 2020. It is authorized to issue 9,200 shares of 8%, $100 par value preferred stock, and 538,600 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.

Jan. 10		Issued 80,120 shares of common stock for cash at $6 per share.
Mar. 1		Issued 5,470 shares of preferred stock for cash at $112 per share.
Apr. 1		Issued 24,910 shares of common stock for land. The asking price of the land was $90,180; the fair value of the land was $80,120.
May 1		Issued 80,120 shares of common stock for cash at $9 per share.
Aug. 1		Issued 9,200 shares of common stock to attorneys in payment of their bill of $51,900 for services rendered in helping the company organize.
Sept. 1		Issued 9,200 shares of common stock for cash at $11 per share.
Nov. 1		Issued 1,090 shares of preferred stock for cash at $113 per share.

Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions