Question

Pronghorn Corporation was organized on January 1, 2020. It is authorized to issue 11,000 shares of 8%, $100 par value preferred stock, and 535,600 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.

Jan. 10		Issued 80,370 shares of common stock for cash at $6 per share.
Mar. 1		Issued 5,570 shares of preferred stock for cash at $110 per share.
Apr. 1		Issued 24,250 shares of common stock for land. The asking price of the land was $91,730; the fair value of the land was $80,370.
May 1		Issued 80,370 shares of common stock for cash at $8 per share.
Aug. 1		Issued 11,000 shares of common stock to attorneys in payment of their bill of $54,600 for services rendered in helping the company organize.
Sept. 1		Issued 11,000 shares of common stock for cash at $10 per share.
Nov. 1		Issued 1,100 shares of preferred stock for cash at $115 per share.

Prepare the journal entries to record the above transactions. (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 0 for the amounts.)

Answer 1

Ans:

Date	Account title and Explanation	Debit	Credit
Jan-10	Cash	482220
	Common Stock		80370
	Paid in capital in excess of stated value -Common Stock		401850
Mar-01	Cash	612700
	Preferred Stock		557000
	Paid in Capital in excess of Par-Preferred Stock		55700
Apr-01	Land	80370
	Common Stock		24250
	Paid in capital in excess of stated value -Common Stock		56120
May-01	Cash	642960
	Common Stock		80370
	Paid in capital in excess of stated value -Common Stock		562590
Aug-01	Organization expense	54600
	Common Stock		11000
	Paid in capital in excess of stated value -Common Stock		43600
Sep-01	Cash	110000
	Common Stock		11000
	Paid in capital in excess of stated value -Common Stock		99000
Nov-01	Cash	126500
	Preferred Stock		110,000
	Paid in Capital in excess of Par-Preferred Stock		16500