Question

Sunland Company was organized on January 1, 2020. It is authorized to issue 14,000 shares of 8%, $100 par value preferred stock, and 550,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year:

Jan. 10

Issued 80,500 shares of common stock for cash at $6 per share.

Mar. 1

Issued 4,400 shares of preferred stock for cash at $105 per share.

Apr. 1

Issued 24,500 shares of common stock for land. The asking price of the land was $86,000. The fair value of the land was $87,500.

May 1

Issued 85,000 shares of common stock for cash at $4.25 per share.

Aug. 1

Issued 10,000 shares of common stock to attorneys in payment of their bill of $45,000 for services performed in helping the company organize.

Sept. 1

Issued 10,000 shares of common stock for cash at $6 per share.

Nov. 1

Issued 1,500 shares of preferred stock for cash at $115 per share.

Journalize the transactions.

Problem 11-01A a-c (Video) (Part Level Submission) Sunland Company was organized on January 1, 2020. It is authorized to issue 14,000 shares of 8%, $100 par value preferred stock, and 550,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year: Jan. 10 Issued 80,500 shares of common stock for cash at $6 per share. Mar. 1 Issued 4,400 shares of preferred stock for cash at $105 per share. Apr. 1 Issued 24,500 shares of common stock for land. The asking price of the land was $86,000. The fair value of the land was $87.500. May 1 Issued 85,000 shares of common stock for cash at $4.25 per share. Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $45,000 for services performed in helping the company organize. Sept. 1 Issued 10,000 shares of common stock for cash at $6 per share. Nov. 1 Issued 1,500 shares of preferred stock for cash at $115 per share.

Answer 1

Journal Entry- Sunland Company
Date	Accounts Title and Explanations	Debit	Credit
10-Jan	Cash	$483,000.00
	Common stock		$241,500.00
	Paid in capital in excess of stated value -common stock		$241,500.00
1-Mar	Cash	$462,000.00
	Preferred stock		$440,000.00
	Paid in capital in excess of par - Preferred stock		$22,000.00
1-Apr	Land (at fair value)	$87,500.00
	Common stock		$73,500.00
	Paid in capital in excess of stated value -common stock		$14,000.00
1-May	Cash	$361,250.00
	Common stock		$255,000.00
	Paid in capital in excess of stated value -common stock		$106,250.00
1-Aug	Organizational expenses	$45,000.00
	Common stock (10000 shares*$3)		$30,000.00
	Paid in capital in excess of stated value -common stock		$15,000.00
1-Sep	Cash (10000 shares*$6)	$60,000.00
	Common stock (10000 shares*$3)		$30,000.00
	Paid in capital in excess of stated value -common stock		$30,000.00
1-Nov	Cash (1500 shares*$115)	$172,500.00
	Preferred stock (1500 shares*$100)		$150,000.00
	Paid in capital in excess of par - Preferred stock		$22,500.00