Mars Enterprises Inc. manufactures office furniture. The company was incorporated on January 1, 2020 with an authorized share of 500,000 common stock with a $90 par value per share and 300,000 shares of no-par value 8% preferred stock with a stated value of $50 per share. The following stock transactions were completed during the first year.

Required: Journalize the following transactions related to stock issuance.
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January 20
Issued 12000 shares of common stock for cash at $140 per share.

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March 20
Issued 1300 shares of common stock to the consultants for helping the company appraise an up-coming project. The on-going market price of the common stock at that time was $110 per share.

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May 20
Issued 1080 shares of common stock to buy equipment, the asking price of the equipment was $150,000. However at the time of the transaction, each common stock was trading at $100 in the market.

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August 20
Issued 13000 shares of preferred stock for cash at $80 per share.

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Account to be credited is (lower of the two amount)

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Answer rating: 100% (QA)

January 20 Issued 12000 shares of common stock for cash at 140 per ... View the full answer