Question

the accounting for defined benefit plans is usually very easy and straightforward

Issuing Stock Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 75,000 shares of preferred 19 stock, 550 par and 250,000 shares of $20 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions. If an amount box does not require an entry, leave it blank. Feb. 5. Issued 160,000 shares of common stock at par for cash. Feb. 5. Cash Common Stock Common Stock Feb. 5. Issued 500 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation Feb. 5. Organizational Expenses Common Stock Apr. 9. Issued 19,500 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $71,000, $388,000, and $87,000, respectively. Apr 9 Land Buildings Equipment Common Stock Pald-In Capital in Excess of Par-Common Stock June 14. Issued 13,000 shares of preferred stock at $61 for cash,

Answer 1

Journal entry

Date	account and explanation	Debit	Credit
Feb 5	Cash (160000*20)	3200000
	Common Stock		3200000
Feb 5	Organisation expense (500*20)	10000
	Common Stock		10000
Apr 9	Land	71000
	Building	388000
	Equipment	87000
	Common Stock (19500*20)		390000
	Paid in Capital in excess of par-Common Stock		156000
June 14	Cash (13000*61)	793000
	Preferred Stock		650000
	paid in capital in excess of par-Preferred stock		143000