Question

Exercise 11-2

Blossom Company had these transactions during the current period.

June 12		Issued 82,000 shares of $1 par value common stock for cash of $307,500.
July 11		Issued 3,700 shares of $101 par value preferred stock for cash at $105 per share.
Nov. 28		Purchased 2,450 shares of treasury stock for $8,800.

Prepare the journal entries for the Blossom Company transactions shown above. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

Journal entries :

Date	account and explanation	debit	credit
June 12	Cash	307500
	Common Stock		82000
	Paid in capital in excess of par value-Common Stock		225500
	(To record issue common Stock)
July 11	Cash (3700*105)	388500
	Preferred stock (3700*101)		373700
	Paid in capital in excess of par value-Preferred stock		14800
	(To record issue preferred stock)
Nov 28	Treasury Stock	8800
	Cash		8800
	(To record purchase treasury stock)