Question

Guild Corporation was organized on June 1. The company's charter authorizes 500,000 shares of $5 par value common stock. On July 1, the attorney who helped organize the corporation accepted 1,050 shares of Guild common stock in settlement for the services provided (the services were valued at $13,300). On July 15, Guild issued 8,750 common shares for $113,750 cash. On September 15, Guild issued 3,500 common shares to acquire a vacant land site appraised at $49,000

Prepare the journal entries to record the stock issuances on July 1, July 15, and September 15.

General Journal
Date	Description	Debit	Credit
July 1	AnswerCashCommon stockLandOrganization costsPaid in capital in excess of par value	Answer	Answer
	Common stock	Answer	Answer
	AnswerCashCommon stockLandOrganization costsPaid in capital in excess of par value	Answer	Answer
	Issued common shares in exchange for legal services.
July 15	AnswerCashCommon stockLandOrganization costsPaid in capital in excess of par value	Answer	Answer
	Common stock	Answer	Answer
	AnswerCashCommon stockLandOrganization costsPaid in capital in excess of par value	Answer	Answer
	Issued common shares for cash.
Sept. 15	AnswerCashCommon stockLandOrganization costsPaid in capital in excess of par value	Answer	Answer
	Common stock	Answer	Answer
	AnswerCashCommon stockLandOrganization costsPaid in capital in excess of par value	Answer	Answer
	Issued common shares for land.

Answer 1

Solution:

S.no.	Particulars	Debit	Credit
01-Jul	Organization Expense Dr	$13,300
	To Common stock (1050*$5)		$5,250
	To Paid in Capital in excess of Par Value- Common Stock		$8,050
15-Jul	Cash Dr	$1,13,750
	To Common stock (8750*$5)		$43,750
	To Paid in Capital in excess of Par Value- Common Stock		$70,000
15-Sep	Land Dr	$49,000
	To Common stock (3500*$5)		$17,500
	To Paid in Capital in excess of Par Value- Common Stock		$31,500