Question

Issuing Stock Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an auth rization of 125 000 shares of preferred 2% stock 500,000 shares of $25 par common stock. The following selected transactions were completed during the first year of operations: ournalize the transactions. Feb. 5. Issued 105,000 shares of common stock at par for cash S40 par n Feb.5 Feb. 5. Issued 600 shares of common stock at par to an attormey in payment of legal fees for organizing the corpcration. Fet5 Apr. 9. Issued 21,500 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $101,000, $5s0,000, and $:23,000, respectively If an amount box does not require an entry, leave it blank. Apr. 9 June 14. Issued 25,000 shares of preferred stock at $52 for cash

Answer 1

Date	General Journal	Debit	Credit
Feb-05	Cash (105000 X $25)	$ 26,25,000
	Common stock		$ 26,25,000
	(Being 105000 common stock issued at par at $25)
Feb-05	Legal Fees / Organization cost (600 X $25)	$       15,000
	Common stock		$       15,000
	(Being 600 common stock issued at par at $25 for payment of legal fees)
Apr-09	Land	$   1,01,000
	Building	$   5,50,000
	Equipment	$   1,23,000
	Common stock (21500 X $25)		$   5,37,500
	Paid - in - capital in excess of - Common stock		$   2,36,500
	(Being 21500 common stock issued at par at $25 in exchange of Land, Building and Equipment)
Jun-14	Cash (25000 X $52)	$ 13,00,000
	Preferred stock (25000 X $40)		$ 10,00,000
	Paid - in - capital in excess of - Preferred stock		$   3,00,000
	(Being 21500 preferred stock issued at $52)