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.
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.
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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