Question

Entries for Issuing Stock On January 22, Limerick Corporation issued for cash 31,000 shares of no-par common stock at $20. On February 14, Limerick issued at par 10,000 shares of 6%, $80 par preferred stock for cash. On August 30, Limerick Corporation issued for cash 17,000 shares of preferred 6% stock, $80 par at $89. Journalize the entries to record the January 22, February 14, and August 30 transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 22 Feb. 14 Aug. 30

Answer 1

Date	Account titles and explanation	Debit	Credit
Jan. 22	Cash(31,000 shares * $20)	$620,000
	Common Stock		$620,000
Feb. 14	Cash(10,000 shares * $80)	$800,000
	Preferred Stock		$800,000
Aug. 30	Cash(17,000 shares * $89)	$1,513,000
	Preferred Stock(17,000 shares * $80)		$1,360,000
	Paid-In Capital in Excess of Par-Preferred Stock		$153,000