Question

Whispering Corporation was organized on January 1, 2020. It is authorized to issue 9,200 shares of 8%, $100 par value preferred stock, and 538,600 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 80,120 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,470 shares of preferred stock for cash at $112 per share. Apr. 1 Issued 24,910 shares of common stock for land. The asking price of the land was $90,180; the fair value of the land was $80,120. May 1 Issued 80,120 shares of common stock for cash at $9 per share. Aug. 1 Issued 9,200 shares of common stock to attorneys in payment of their bill of $51,900 for services rendered in helping the company organize. Sept. 1 Issued 9,200 shares of common stock for cash at $11 per share. Nov. 1 Issued 1,090 shares of preferred stock for cash at $113 per share.

Prepare the journal entries to record the above transactions.

Answer 1

Date	Account Titles	Debit $	Credit $
Jan.10	Cash ( 80,120 x 6 )	480,720
	Common Stock ( 80,120 x 1 )		80,120
	Paid in capital in excess of Stated value Common stock		400,600
Mar.1	Cash ( 5,470 x 112 )	612,640
	Preferred Stock (5,470 x 100 )		547,000
	Paid in capital in excess of par preferred stock		65,640
Apr.1	Land	80,120
	Common Stock ( 24,910 x 1 )		24,910
	Paid in capital in excess of Stated value Common stock		55,210
May.1	Cash ( 80,120 x 9 )	721,080
	Common Stock ( 80,120 x 1 )		80,120
	Paid in capital in excess of Stated value Common stock		640,960
Aug.1	Organization Expense	51,900
	Common Stock ( 9,200 x 1 )		9,200
	Paid in capital in excess of Stated value Common stock		42,700
Sept.1	Cash ( 9,200 x 11 )	101,200
	Common Stock ( 9,200 x 1 )		9,200
	Paid in capital in excess of Stated value Common stock		92,000
Nov.1	Cash ( 1,090 x 113 )	123,170
	Preferred Stock ( 1,090 x 100 )		109,000
	Paid in capital in excess of par preferred stock		14,170