PROBLEM 1

Prepare the necessary journal entry for each of the following transactions for Terpsichorp Corporation.Journalize the transactions

(a)Issued 2,000 shares of its $10 par value common stock for $20 per share.

(b)Issued 5,000 shares of its stock for land advertised for sale at $90,000. Terpsichorp's stock is actively traded at a market price of $16 per share.

PROBLEM 2

Rowlands Corporation has 100,000 shares of $40 par value preferred stock authorized. During the year, it had the following transactions related to its preferred stock. Journalize the transactions

(a)Issued 20,000 shares at $55 per share.

(b)Issued 10,000 shares for equipment having a $700,000 asking price. The stock had a market value of $75 per share.

PROBLEM 3

Bridgeport Corporation began operations on April 1 by issuing51,500shares of $5par value common stock for cash at $13per share. On April 19, it issued1,650shares of common stock to attorneys in settlement of their bill of $25,300for organization costs. In addition, Bridgeport issued 1,200 shares of $1 par value preferred stock for $7 cash per share.

Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded.

PROBLEM 4

Blue Spruce Corporation issued3,200shares of stock.

Prepare the entry for the issuance under the following assumptions.

(a)The stock had a par value of $8per share and was issued for a total of $50,000.

(b)The stock had a stated value of $8per share and was issued for a total of $50,000.

(c)The stock had no par or stated value and was issued for a total of $50,000.

(d)The stock had a par value of $8per share and was issued to attorneys for services during incorporation valued at $50,000.

(e)The stock had a par value of $8per share and was issued for land worth $50,000.