Record the following transactions for 2019 in the General Journal: 

Jan 3 Issued 20,000 common shares for cash at $11 per share.

4 Issued 1,000 preferred shares for cash at $10 per share.

4 Exchanged $50,000 cash and 25,000 common shares for a building with a market value of $260,000.

Feb 1 Tudhope needs to raise capital for a factory expansion. The board of directors has just concluded negotiations with an underwriter to issue $500,000 of 8%, 15-year callable bonds with interest payment dates of  July 31 and Jan 31. The bonds are issued on Feb 1, 2019, at 102.5. Wright's year end is December 31 and effective interest is used. The annual market rate on Feb 1 is 7%.

Mar 2 Declared cash dividends in the amount of $50,000 to be distributed on March 15^th to the shareholders of record on March 10^th.

Mar 15 Paid the cash dividends declared on March 1.

May 10 Declared a 10% stock dividend for the shareholders of record on May 31. Market price of the shares on this date is $12 per share.

May 31 Distributed the stock dividend.

July 31 Made the first interest payment on the bonds issued on February 1.

Aug 1 Repurchased 5,000 of its common shares. The market price on this date is $14 per share.

Nov 15 Declared a 1 for 2 stock split on the common shares outstanding.

Dec 31 Closed the Income Summary account to Retained Earnings in the amount of $83,000.

Answer rating: 100% (QA)

The General Journal entries for the given transactions in 2019 are as follows Jan 3 Cash 220000 Comm... View the full answer