Question

Ayayai Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 450,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 75,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 4,000 shares of preferred stock for cash at $105 per share. Apr. 1 Issued 22,000 shares of common stock for land. The asking price of the land was $85,000. The fair value of the land was $80,000. May 1 Issued 75,000 shares of common stock or cash at $4.25 per share. Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $35,000 for services performed in helping the company organize. Sept. 1 Issued 10,000 shares of common stock for cash at $5 per share. Nov. 1 Issued 1,000 shares of preferred stock for cash at $108 per share. Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit

Answer 1

Date	Account title and explanation	Debit	Credit
Jan-10	Cash (75,000*$4)	$ 300,000
	Common Stock (75,000*$2)		$ 150,000
	Additional paid in capital in excess of stated value - Common stock		$ 150,000
Mar-01	Cash (4,000*$105)	$ 420,000
	Preferred Stock (4,000*$100)		$ 400,000
	Additional paid in capital in excess of par value - Preferred stock		$    20,000
Apr-01	Land	$    80,000
	Common stock (22,000*$2)		$    44,000
	Additional paid in capital in excess of stated value - Common stock		$    36,000
May-01	Cash (75,000*$4.25)	$ 318,750
	Common Stock (75,000*$2)		$ 150,000
	Additional paid in capital in excess of stated value - Common stock		$ 168,750
Aug-01	Organization charges / Incorporation fee	$    35,000
	Common stock (10,000*$2)		$    20,000
	Additional paid in capital in excess of stated value - Common stock		$    15,000
Sep-01	Cash (10,000*$5)	$    50,000
	Common Stock (10,000*$2)		$    20,000
	Additional paid in capital in excess of stated value - Common stock		$    30,000
Nov-01	Cash (1,000*$108)	$ 108,000
	Preferred Stock (1,000*$100)		$ 100,000
	Additional paid in capital in excess of par value - Preferred stock		$      8,000

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