Question

The Mayfair Corporation was organized on August 1, 2019. The firm is authorized to issue 95.000 shares of no-par-value common stock with a stated value of $20 per share and 35,000 shares of $51 par value. 10 percent preferred stock points 8 00 2004 Jan. 1 Issued 2,100 shares of common stock to Justin Baker for $20 share 1 Issued 1,950 shares of preferred stock to Austin Moore at par value. 6 Issued 1,800 shares of common stock to Mandle Brown for $25 share 10 Received a subscription for 2,300 shares of preferred stock from Lauren Durio for $60 a share, payable in two installments due on the 15th and 31st of August. 15 Received payment of stock subscription installment due from Lauren Durio (one-half of the purchase price). 31 Received the balance due on the stock subscription of August 10 from Lauren Durio. Issued the stock. eBook Punt References Record in general journal form the transactions listed above. View transaction list Journal entry worksheet KO? O O O O O Issued 1,950 shares of preferred stock to Austin Moore at par value.

Answer 1

Journal Entries:

Date	Accounts Titles and Explanation	Debit	Credit
Jan. 1	Cash (2,100 shares * $20)	$42,000
	Common Stock		$42,000
	(To record the issue of common stock for cash)
Jan. 1	Cash (1,950 shares * $51)	$99,450
	Preferred Stock		$99,450
	(To record the issue of common stock for cash)
Jan. 6	Cash (1,800 shares * $25)	$45,000
	Common Stock (1,800 shares * $20)		$36,000
	Paid-in capital in excess of par value - common stock ($25 - $20 = $5 * 1,800 shares)		$9,000
	(To record the issue of common stock for cash)
Jan. 10	Subscriptions Receivable for Preferred Stock	$138,000
	Issue of Preferred Stock (2,300 shares * $60 per share)		$138,000
	(To record subscription for preferred stock)
Jan. 15	Cash	$69,000
	Subscription Receivable for Preferred Stock ($138,000*1/2)		$69,000
	(To record the collection of first half of subscription installment amount)
Jan. 31	Cash	$34,500
	Subscription Receivable for Preferred Stock ($138,000*1/2)		$69,000
	(To record the collection of first half of subcription installment amount)
Jan. 31	Issue of Preferred Stock	$138,000
	Preferred Stock		$138,000
	(To record the issue of preferred stock)