PA4. LO 14.2 Wingra Corporation was organized in March. It is authorized to issue 500,000 shares of $100 par value 8% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. In its first year, the corporation has the following transactions:

Mar. 1	Issued 10,000 shares of preferred stock at $115 per share
Mar. 2	Issued 120,000 shares of common stock at $12.50 per share
Apr. 10	Issued 15,000 shares of common stock for equipment valued at $196,000. The stock is currently trading at $12 per share, and is a more reliable indicator of the value of the equipment.
Jun. 12	Issued 10,000 shares of common stock at $15 per share
Aug. 5	Issued 1,000 shares of preferred stock at $112 per share

Journalize the transactions.

Solution

Mar. 1	Cash
Preferred Stock
Additional Paid-in Capital from Preferred Stock
To record issuance of preferred stock
Mar. 2	Cash
Common Stock
Additional Paid-in Capital from Common Stock
To record issuance of common stock
Apr. 10	Equipment
Common Stock
Additional Paid-in Capital from Common Stock
To record issuance of stock for equipment
Jun. 12	Cash
Common Stock
Additional Paid-in Capital from Common Stock
To record issuance of common stock
Aug. 5	Cash
Preferred Stock
Additional Paid-in Capital from Preferred Stock
To record issuance of preferred stock