Question

ABC Corporation is authorized to issue 1.000.000 shares of $1 par value common stock During 2020, its first year of operation, the company has the following stock transactions. Jan. 1 Issued 100,000 shares of stock at $12 per share. Jan. 30 Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $8,000. July 2 Issued 10,000 shares of stock for land. The land had an asking price of $85,000. The stock is currently selling on a national exchange at $8 per share. Sept. 5 Purchased 15,000 shares of treasury stock at $13 per share. Dec. 6 Sold 9,000 shares of the treasury stock at $14 per share. Dec. 26 Sold the remaining 6,000 shares of the treasury stock at $12 per share. Instructions Journalize the transactions IN GOOD FORM for ABC Corporation. Date Account Debit Credit

Answer 1

Date		Account titles and explanation		Debit(in $)	Credit(in $)
	Jan-01	Cash		12,00,000
		Common Stock			1,00,000
		Paid in capital in excess of par-Common shares			11,00,000
	Jan-30	Organization expenses		8,000
		Common stock			500
		Paid in capital in excess of par-Common shares			7,500
	Jul-02	Land		85,000
		Common stock			80,000
		Paid in capital in excess of par-Common shares			5,000
	Sep-05	Treasury Stock		1,95,000
		Cash			1,35,000
	Dec-06	Cash		1,26,000
		Treasury stock			1,17,000
		Paid in capital from Treasury stock			9,000
	Dec-26	Cash		72,000
		Treasury stock			72,000