Willow Creek Nursery, with an authorization of 73,000 shares of preferred stock and 180,000 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:   Willow Creek Nursery UNADJUSTED TRIAL BALANCE October 1, 20--     ACCOUNT TITLE DEBIT CREDIT 1 Cash 3,978,000.00   2 Land 862,000.00   3 Buildings 1,922,000.00   4 Preferred 1% Stock, $80 par   2,560,000.00 5 Paid-In Capital in Excess of Par-Preferred Stock   224,000.00 6 Common Stock, $30 par   3,510,000.00 7 Paid-In Capital in Excess of Par-Common Stock   468,000.00 8 Totals 6,762,000.00 6,762,000.00       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 two entries to record the transactions summarized in the trial balance. Refer to the Chart of Accounts for exact wording of account titles.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Willow Creek Nursery, with an authorization of 73,000 shares of preferred stock and 180,000 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:
 
Willow Creek Nursery
UNADJUSTED TRIAL BALANCE
October 1, 20--
 
  ACCOUNT TITLE DEBIT CREDIT
1
Cash
3,978,000.00
 
2
Land
862,000.00
 
3
Buildings
1,922,000.00
 
4
Preferred 1% Stock, $80 par
 
2,560,000.00
5
Paid-In Capital in Excess of Par-Preferred Stock
 
224,000.00
6
Common Stock, $30 par
 
3,510,000.00
7
Paid-In Capital in Excess of Par-Common Stock
 
468,000.00
8
Totals
6,762,000.00
6,762,000.00
 
 
 
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 two entries to record the transactions summarized in the trial balance. Refer to the Chart of Accounts for exact wording of account titles.
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