Question

CALCULATOR ALL SCREEN PONTEVERN BACK Question 11 Novak Corporation was organized on January 1, 2020. It is authorized to issue 13,000 shares of 8%, $100 par value preferred stock, und 526,000 shares of ropar common stock with a stated value of $3 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 84,500 shares of common stock for cash at $6 per share Mar. Issued 5.150 shares of preferred stock for cash at $105 per share. Apr. 1 Issued 24,000 shares of common stock for land. The asking price of the land was $91,000. The fair value of the land was $80,500 May 1 Issued 83,500 shares of common stock for cash at $4.75 per share. Aug. 1 Issued 11,000 shares of common stock to attorneys in payment of their bel of $38.500 for services performed in helping the company organize Sept. 1 Issued 12,000 shares of common stock for cash at $7 per share. Nov. 1 Issued 2,000 shares of preferred stock for cash at $109 per share. Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Credit

Answer 1

Date	General Journal	Debit	Credit
Jan-10	Cash (84,500*$6)	$   507,000
	Common stock (84,500*$3)		$   253,500
	Paid in capital in excess of stated value - Common stock		$   253,500
Mar-01	Cash (5,150*$105)	$   540,750
	Preferred stock (5,150*$100)		$   515,000
	Paid in capital in excess of par value - Preferred stock		$     25,750
Apr-01	Land	$     80,500
	Common stock (24,000*$3)		$     72,000
	Paid in capital in excess of stated value - Common stock		$       8,500
May-01	Cash (83,500*$4.75)	$   396,625
	Common stock (83,500*$3)		$   250,500
	Paid in capital in excess of stated value - Common stock		$   146,125
Aug-01	Organization expense	$     38,500
	Common stock (11,000*$3)		$     33,000
	Paid in capital in excess of stated value - Common stock		$       5,500
Sep-01	Cash (12,000*7)	$     84,000
	Common stock (12,000*$3)		$     36,000
	Paid in capital in excess of stated value - Common stock		$     48,000
Nov-01	Cash (2,000*$109)	$   218,000
	Preferred stock (2,000*$100)		$   200,000
	Paid in capital in excess of par value - Preferred stock		$     18,000

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