Question

Exercise 11-8 Quay Co. had the following transactions during the current period. Mar. 2 Issued 4,000 shares of $6 par value common stock to attorneys in payment of a bill for $28,700 for services performed in helping the company to incorporate. June 12 Issued 62,800 shares of $6 par value common stock for cash of $450,200. July 11 Issued 1,975 shares of $110 par value preferred stock for cash at $140 per share. Nov. 28 Purchased 1,560 shares of treasury stock for $76,500. Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit

Answer 1

Solution

Date	Accounts title	Debit	Credit
Mar-02	Legal expenses	$        28,700.00
	Common stock		$    24,000.00
	Paid in Capital in Excess of Par value - Common stock		$       4,700.00
	(To record issue of common stock)
Jun-12	Cash	$      450,200.00
	Common Stock		$ 376,800.00
	Paid in Capital in Excess of par value - Common Stock		$    73,400.00
	(Common Stock issued for cash)
Jun-11	Cash	$      276,500.00
	Preferred stock		$ 217,250.00
	Paid in Capital in Excess of par value - Preferred stock		$    59,250.00
	(Preferred Stock issued for cash)
Nov-28	Treasury stock	$        76,500.00
	Cash		$    76,500.00
	(To record treasury stock)