Question

*Problem 13-01A a-c Pronghorn Corporation was organized on January 1, 2020. It is authorized to issue 11,000 shares of 8%, $100 par value preferred stock, and 498,000 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 75,500 shares of common stock for cash at $4 per share. Mar. 1 Issued 5,550 shares of preferred stock for cash at $105 per share. Apr. 1 Issued 24,500 shares of common stock for land. The asking price of the land was $85,500. The fair value of the land was $85,500. May 1 Issued 75,500 shares of common stock for cash at $4.75 per share. Aug. 1 Issued 11,500 shares of common stock to attorneys in payment of their bill of $40,000 for services performed in helping the company organize. Sept. 1 Issued 11,000 shares of common stock for cash at $7 per share. Nov. 1 Issued 2,500 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

Journal Entries:

Date	Account title and explanation	Debit	Credit
Jan 10	Cash [75500 x $4]	$302,000
	Common stock [75500 x $1 par]		$75,500
	Paid-in capital in excess of par-Common		$226,500
	[To record issuance of common stock]
Mar 1	Cash [5,550 x $105]	$582,750
	Preferred stock [5550 x $100 par]		$555,000
	Paid-in capital in excess of par-Preferred		$27,750
	[To record issuance of preferred stock]
Apr 1	Land	$85,500
	Common stock [24500 x $1 par]		$24,500
	Paid-in capital in excess of par-Common		$61,000
	[To record acquisition of land in exchange of shares]
May 1	Cash [75500 x $4.75]	$358,625
	Common stock [75500 x $1 par]		$75,500
	Paid-in capital in excess of par-Common		$283,125
	[To record issuance of common stock]
Aug 1	Organization expense	$40,000
	Common stock [11500 x $1 par]		$11,500
	Paid-in capital in excess of par-Common		$28,500
	[To record organization expense]
Sept 1	Cash [11000 x $7]	$77,000
	Common stock [11000 x $1 par]		$11,000
	Paid-in capital in excess of par-Common		$66,000
	[To record issuance of common stock]
Nov 1	Cash [2500 x $108]	$270,000
	Preferred stock [2500 x $100 par]		$250,000
	Paid-in capital in excess of par-Preferred		$20,000
	[To record issuance of preferred stock]