With an authorization of 50,000 shares of preferred 2% stock, $40 par and 750,000 shares of $7 par common stock. 

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

Journalize the transactions.

a. Jul. 1. Issued 400,000 shares of common stock at par for cash.

b. Jul. 1. Issued 1,000 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.

c. Aug 7. Issued 80,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $250,000, $400,000, and $70,000, respectively.

For a compound transaction, if an amount box does not require an entry, leave it blank.

d. Sep 20. Issued 25,000 shares of preferred stock at $44 for cash.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Answer rating: 100% (QA)

Journal entry Date accounts explanation Debit credit Jul 1 ... View the full answer