The following selected transactions were completed during the first year of operations:

Jan. 3	Issued 15,000 shares of common stock at $23 per share for cash.
31	Issued 200 shares of common stock to an attorney in payment of legal fees for organizing the corporation. The value of the stock at the time of payment was $25 per share.
Feb. 24	Issued 20,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $65,000, $120,000, and $45,000 respectively.
Mar. 15	Issued 2,000 shares of preferred stock at $56 for cash.

Required:

Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Supplies
151	Prepaid Insurance
181	Land
191	Buildings
192	Accumulated Depreciation-Building
193	Equipment
194	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
226	Interest Payable
231	Cash Dividends Payable
241	Salaries Payable
261	Mortgage Note Payable

	EQUITY
311	Preferred Stock
312	Paid-In Capital in Excess of Par-Preferred Stock
321	Common Stock
322	Paid-In Capital in Excess of Par-Common Stock
323	Paid-In Capital in Excess of Stated Value-Common Stock
331	Treasury Stock
332	Paid-In Capital from Sale of Treasury Stock
336	Stock Dividends Distributable
340	Retained Earnings
351	Cash Dividends
352	Stock Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Rent Expense
534	Insurance Expense
535	Supplies Expense
536	Organizational Expenses
561	Depreciation Expense-Building
562	Depreciation Expense-Equipment
590	Miscellaneous Expense
710	Interest Expense

Journalize for the each transaction. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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Answer rating: 100% (QA)

Journal Entries Jan03 Cash 345000 1500023 Common stock 45000 150003 Par value in e... View the full answer