On February 28 of the current year, the following accounts and their balances appear in the ledger
Question:
On February 28 of the current year, the following accounts and their balances appear in the ledger of Wild Things Corp., a meat processor:
At the annual stockholders' meeting on April 2, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $3,650,000. The plan provided(a) That a building, valued at $1,680,000, and the land on which it is located, valued at $420,000, be acquired in accordance with preliminary negotiations by the issuance of 65,000 shares of common stock,(b) That 21,000 shares of the unissued preferred stock be issued through an underwriter, and(c) That the corporation borrow $700,000. The plan was approved by the stockholders and accomplished by the following transactions:June 9.Issued 65,000 shares of common stock in exchange for land and a building, according to the plan13. Issued 21,000 shares of preferred stock, receiving $40 per share in cash.25. Borrowed $700,000 from Wasburn City Bank, giving an 8% mortgage note.No other transactions occurred during June.InstructionsJournalize the entries to record the foregoingtransactions.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren