Question

Rouda Incorporation in its first year of operations recorded the following transactions in respect of its shareholders' equity. The authorized share capital was 16 million common shares at $1 par per share, and 2 million preferred shares, $50 par per share. Jan 10 Sold 4 million common shares, for $18 per share. 12 Issued 80,000 common shares for $18 per share to a lawyer in exchange for his legal services. 15 Sold 160,000 of its common shares for $18 per share and 8,000 preferred shares for a total of $1,890,000. 28 Issued 760,000 of its common shares in exchange for factory machinery for which the cash price was known to be $7,376,000. Required: Prepare the journal entries to record the above transactions using the table below:

Answer 1

Sournal ce Date Van lo Иом Alc Jan 12 Solution In the books of Rouda Incorporation Ant in $) Particulars Cash Ale -ce 72m to common stock Alc to other's equity 68M (Being sale of shares Recorded) -de 11.44m to common stock Alc to other's equity Ale 11.36m (Being shares issue in exchange of 잉 services reed) B Cash Alc ch to common Stock Ale .16m to preferred stock Alc .4m to other's quity Ale 1.33m Being Sale of shalls made and ) Legal services Ale .08m Jan 15 1.89m -dq 7.376m to common stock Ala .76m 6.616m Jan 28 factory Machinery Ale to other's equity Ale ( Being sholls issued dexchange of factory Mochinen * One can use Additional faict in capital in place of other equity Al.