Question

Vaden Corporation is authorized to issue 50,000 shares of $3 par value common stock. During 2019, Vaden engaged in the following transactions: 3/1/19 Issued 3,000 shares of stock to attorneys in payment of a bill for $40,000 for services rendered in helping the company to incorporate. 5/1/19 Issued 7,000 shares of stock at $20 per share. 7/1/19 Issued 10,000 shares of stock for land. The asking price of the land was $200,000. The fair market value of the land was $185.000 Required: Prepare the journal entries to record these transactions. 3/1/15

Answer 1

Answer:

Credit Debit 40,000 $ Date General Journal 3/1/2019 Organization expense Common stock (3,000 $3) Paid in capital in excess of stated value-Common stock $ 9,000 31,000 140,000 5/1/2019 Cash Common stock (7,000 $3) Paid in capital in excess of stated value-Common stock 21,000 119,000 185,000 7/1/2019 Land Common stock (10,000 x $3) Paid in capital in excess of stated value-Common stock 30,000 155,000