Willow Creek Nursery, with an authorization of 18,000 shares of preferred stock and 320,000 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: 

Line Item Description	Amount	Amount
Cash	460,200
Land	90,000
Buildings	183,000
Preferred 2% Stock, $100 par		260,000
Paid-In Capital in Excess of Par-Preferred Stock		13,000
Common Stock, $40 par		312,000
Paid-In Capital in Excess of Par-Common Stock		148,200
Total	733,200	733,200

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.

Question Content Area

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.

Answer rating: 100% (QA)

To journalize the entries for the common and preferred stock transactions we ... View the full answer