Question

Sandhill Corporation was organized on January 1, 2020. It is authorized to issue 9.100 shares of 8%. $100 par value preferred stock, and 525.800 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Issued 80.170 shares of common stock for cash at $6 per share. Jan. 10 Mar. 1 Apr. 1 May Issued 5.410 shares of preferred stock for cash at $112 per share. Issued 24.730 shares of common stock for land. The asking price of the land was $91.570; the fair value of the land was $80.170. Issued 80,170 shares of common stock for cash at $9 per share. Issued 9,100 shares of common stock to attorneys in payment of their bill of $50,100 for services rendered in helping the company organize. Issued 9.100 shares of common stock for cash at $11 per share. 1 Aug 1 Sept. 1 Nov. 1 Issued 1.010 shares of preferred stock for cash at $106 per share. Prepare the journal entries to record the above transactions. (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 O for the amounts.) Date Account Titles and Explanation Debit Credit <

Answer 1

Journal Entries:

Date	Account title and explanation	Debit	Credit
Jan 10	Cash [80170 x $6]	$481,020
	Common stock [80170 x $1 stated value]		$80,170
	Paid in capital in excess of stated value-Common		$400,850
	[To record issuance of common stock for cash]
Mar 1	Cash [5410 x $112]	$605,920
	Preferred stock [5410 x $100 par]		$541,000
	Paid in capital in excess of par-preferred		$64,920
	[To record issuance of preferred stock for cash]
Apr 1	Land	$80,170
	Common stock [24730 x $1 stated value]		$24,730
	Paid in capital in excess of stated value-Common		$55,440
	[To record issuance of common stock for land]
May 1	Cash [80170 x $9]	$721,530
	Common stock [80170 x $1 stated value]		$80,170
	Paid in capital in excess of stated value-Common		$641,360
	[To record issuance of common stock for cash]
Aug 1	Organization expense	$50,100
	Common stock [9100 x $1 stated value]		$9,100
	Paid in capital in excess of stated value-Common		$41,000
	[To record issuance of common stock for organization expense]
Sept 1	Cash [9100 x $11]	$100,100
	Common stock [9100 x $1 stated value]		$9,100
	Paid in capital in excess of stated value-Common		$91,000
	[To record issuance of common stock for cash]
Nov 1	Cash [1010 x $106]	$107,060
	Preferred stock [1010 x $100 par]		$101,000
	Paid in capital in excess of par-preferred		$6,060
	[To record issuance of preferred stock for cash]