Question

an authorization of 125.000 shares of 4% preferred stock, 575 par and 250.000 shares of $20 par common stock Work Place Products Inc., a wholesaler of office products, was organised on July 1 of the current yea The following selected transactions were completed during the first year of operations: Journalize the transactions July. 1. Issued 80,000 shares of common stock at par for cash. July 1 July 1 Issued 650 shares of common stock at par to an attorney in payment of legal July 1 Aug. 7. Issued 16,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $50.000, 1318,000, and $72.000, respectively For a compound transaction, if an amount box does not require an entry, leave it blank Aug. Sept. 20. Issued 13,000 shares of preferred stock at $87 for cash. For a compound transaction, an amount box does not require an entry, leave it blan Sept. 20

Answer 1

July 1	Cash (80,000*$20)	$1,600,000
	Common stock		$1,600,000
July 1	Legal expenses (650*$20)	$13.000
	Common stock		$13,000
Aug.7	Land	$58,000
	Buildings	318,000
	Equipment	72,000
	Common stock (16,000*$20)		$320,000
	Paid in capital in excess of par		128,000
Sept.20	Cash (13,000*$87)	$1,131,000
	Preferred stock (13,000*$75)		$975,000
	Paid in capital in excess of par		156,000