Question

Issuing Stock Work Place Products Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 125,000 shares of 3% preferred stock, $75 par and 700,000 shares of $15 par common Brock. The following selected transactions were completed during the first year of operations: Journalize the transactions. July. 1. Issued 110,000 shares of common stock at par for cash. July 1 Cash Common Stock July, 1 Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. July 1 Organizational Expenses Common Stock Aug. 7. Issued 24,500 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $67,000, $365,000, and $82,500, respectively. For a compound transaction, if an amount box does not require an entry, leave it blank. Aug. 7 Land Buildings Equipment Common Stock Paid-In Capital in Excess of Par-Common Stock Sept. 20. Issued 35,000 shares of preferred stock at $89 for cash. CARRARA Fan munt havdar at an anti luni hal Previous Next >

Answer 1

Work Place Products Inc.

Journal Entries
Date	General Journal	Debit	Credit
Jul. 1	Cash	$1,650,000
	Common Stock (110,000 shares * $15 per share)		$1,650,000
	(To record the issue of common stock)
Jul. 1	Organizational Expenses	$6,000
	Common Stock (400 shares * $15 per share)		$6,000
	(To record the issue of common stock in payment to an attorney)
Aug. 7	Land	$67,000
	Buildings	$365,000
	Equipment	$82,500
	Common Stock (24,500 shares * $15 per share)		$367,500
	Paid-in Capital in Excess of Par-Common Stock ($67,000 + $365,000 + $82,500 - $367,500)		$147,000
	(To record the issue of common stock in exchange for fixed assets)
Sep. 20	Cash (35,000 shares * $89 per share)	$3,115,000
	Preferred Stock (35,000 shares * $75 per share)		$2,625,000
	Paid-in Capital in Excess of Par-Preferred Stock ($89 - $75 = $14 * 35,000 shares)		$490,000
	(To record the issue of preferred stock for cash)

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