Question

Issuing Stock Willow Creek Nursery, with an authorization of 17,000 shares of preferred stock and 350,000 shares of common stock, completed several transactions involving its stock on October 1, the first day of operations. The trial balance at the close of the day follows: Cash 389,400 Land 104,000 Buildings 211,000 Preferred 2% Stock, $100 par 300,000 Paid-In Capital in Excess of Par- 15,000 Preferred Stock Common Stock, $40 par 254,000 Paid In Capital in Excess of Par- 125,400 Common Stock 704,400 704,400 All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings. Journalize the entries to record the (1) common and (2) preferred stock transactions summarized in the trial balance. If an amount box does not require an entry, leave it blank. (1) Cash Common Stock Paid-In Capital in Excess of Par-Common Stock If an amount box does not require an entry, leave it blank. (2) Buildings Land Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock 110 00

Answer 1

1	Cash	389400
	Common Stock		264000
	Paid in Capital in excess of par-Common Stock		125400
2	Buildings	211000
	Land	104000
	Preferred Stock		300000
	Paid in Capital in excess of par-Preferred Stock		15000