Question

Pina Colada Corp. was organized on January 1, 2019. It is authorized to issue 12,000 shares of 8%, $100 par value preferred stock, and 512,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year:

Journalize the transactions.

Jan.	10		Issued 79,000 shares of common stock for cash at $4 per share.
Mar.	1		Issued 5,850 shares of preferred stock for cash at $105 per share.
Apr.	1		Issued 23,000 shares of common stock for land. The asking price of the land was $87,500. The fair value of the land was $88,000.
May	1		Issued 81,000 shares of common stock for cash at $4.50 per share.
Aug.	1		Issued 12,000 shares of common stock to attorneys in payment of their bill of $36,000 for services performed in helping the company organize.
Sept.	1		Issued 12,000 shares of common stock for cash at $5 per share.
Nov.	1		Issued 2,000 shares of preferred stock for cash at $108 per share.

Answer 1

Date 1 Debit credit $316,000 $4480 $ 158,000 $158,000 $614,290 Ac Description Jan 1o | Cash (49000+ $4) Common stock C 49000 x$2) paid in Capital.common Marchi Cash (5,850x $105) Preferred Stocks (5,850x4100) paid in Capital - preferred April i Land Common stock (* 23000 $2) paid in Capital - common Mayl Cash (810008$4.5) Common stock Paid in Capital - common " Aug i Organization expenses Common Stock C12000x$a) paid in capital. common Sept I Cash (121000 x $5) Common Stock C12000 x $2) paid in Capital – common Novi Cash (20000 $108) preferred stock Paid in Capital - preferred. $585,000 $ 29,250 $ 88,000 $ 46,000 $42060 $364,500 $162,000 $ 202,500 $36,000 |$24,000 $12000: $ 60,000 $241000 $36.000 $916,000 $ 200,000 | $16,000