The Vogel and Wallis Corporation is authorized to issue 15,000 shares of 10%, $50 par value preferred stock and 60,000 shares of $5 par value common stock. Following is a narrative of selected transactions completed during the first month after incorporation. June 1 The incorporators accepted subscriptions for 5,000 shares of preferred stock at $55 per share. 8 The incorporators accepted subscriptions for 16,000 shares of common stock at $6 per share. 12 Subscribers of the preferred stock paid $75,000 cash and land valued at $200,000 in full settlement of the subscriptions. 12 Subscribers of the common stock paid $21,000 cash, a $45,000 building, and equipment worth $30,000 in full settlement of the subscriptions. Required: Prepare the journal entries necessary for the transactions. If an amount box does not require an entry, leave it blank.
The Vogel and Wallis Corporation is authorized to issue 15,000 shares of 10%, $50 par value preferred stock and 60,000 shares of $5 par value common stock. Following is a narrative of selected transactions completed during the first month after incorporation. June 1 The incorporators accepted subscriptions for 5,000 shares of preferred stock at $55 per share. 8 The incorporators accepted subscriptions for 16,000 shares of common stock at $6 per share. 12 Subscribers of the preferred stock paid $75,000 cash and land valued at $200,000 in full settlement of the subscriptions. 12 Subscribers of the common stock paid $21,000 cash, a $45,000 building, and equipment worth $30,000 in full settlement of the subscriptions. Required: Prepare the journal entries necessary for the transactions. If an amount box does not require an entry, leave it blank.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Vogel and Wallis Corporation is authorized to issue 15,000 shares of 10%, $50 par value preferred stock and 60,000 shares of $5 par value common stock. Following is a narrative of selected transactions completed during the first month after incorporation.
June 1 | The incorporators accepted subscriptions for 5,000 shares of preferred stock at $55 per share. |
8 | The incorporators accepted subscriptions for 16,000 shares of common stock at $6 per share. |
12 | Subscribers of the preferred stock paid $75,000 cash and land valued at $200,000 in full settlement of the subscriptions. |
12 | Subscribers of the common stock paid $21,000 cash, a $45,000 building, and equipment worth $30,000 in full settlement of the subscriptions. |
Required:
Prepare the
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