Question

Whispering Corporation was organized on January 1, 2017. It is authorized to issue 9,800 shares of 8%, $100 par value preferred stock, and 516,800 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.

Jan. 10		Issued 80,550 shares of common stock for cash at $7 per share.
Mar. 1		Issued 5,100 shares of preferred stock for cash at $110 per share.
Apr. 1		Issued 24,530 shares of common stock for land. The asking price of the land was $91,120; the fair value of the land was $80,550.
May 1		Issued 80,550 shares of common stock for cash at $8 per share.
Aug. 1		Issued 9,800 shares of common stock to attorneys in payment of their bill of $48,000 for services rendered in helping the company organize.
Sept. 1		Issued 9,800 shares of common stock for cash at $10 per share.
Nov. 1		Issued 1,060 shares of preferred stock for cash at $120 per share.

Answer 1

Date	General Journal	Debit	Credit
Jan-10	Cash (80,550 * $7)	$   563,850
	Common stock (80,550*$1)		$     80,550
	Additional paid in capital in excess of stated value - Common stock		$   483,300
Mar-01	Cash (5,100*$110)	$   561,000
	Preferred stock (5,100*$100)		$   510,000
	Additional paid in capital in excess of par value - Preferred stock		$     51,000
Apr-01	Land	$     80,550
	Common stock (24,530*$1)		$     24,530
	Additional paid in capital in excess of stated value - Common stock		$     56,020
May-01	Cash (80,550 * $8)	$   644,400
	Common stock (80,550*$1)		$     80,550
	Additional paid in capital in excess of stated value - Common stock		$   563,850
Aug-01	Incorporation charges / Legal charges	$     48,000
	Common stock (9,800*$1)		$       9,800
	Additional paid in capital in excess of stated value - Common stock		$     38,200
Sep-01	Cash (9,800 * $10)	$     98,000
	Common stock (9,800*$1)		$       9,800
	Additional paid in capital in excess of stated value - Common stock		$     88,200
Nov-01	Cash (1,060*$120)	$   127,200
	Preferred stock (1,060*$100)		$   106,000
	Additional paid in capital in excess of par value - Preferred stock		$     21,200

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