Question

Presented below is information related to Bonita Company: 1. The company is granted a charter that authorizes issuance of 15,000 shares of $100 par value preferred stock and 40,000 shares of no-par common stock. 2. 9,500 shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $300,000. The board establishes a stated value of $10 a share for the common stock. 3. 5,800 shares of preferred stock are sold for cash at $110 per share. 4. The company issues 170 shares of common stock to its attorneys for costs associated with starting the company. At that time, the common stock was selling at $58 per share. Prepare the general journal entries necessary to record these 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 0 for the amounts.)

Presented below is information related to Bonita Company: 1. 2 The company is granted a charter that authorizes issuance of 15,000 shares of $100 par value preferred stock and 40,000 shares of no-par common stock. 9,500 shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $300,000. The board establishes stated value of $10 a share for the common stock 5,800 shares of preferred stock are sold for cash at $110 per share. The company issues 170 shares of common stock to its attorneys for costs associated with starting the company. At that time, the common stock was selling at $58 per share. 3. 4. entered. Do not indent manually. If no entry Prepare the general journal entries necessary to record these transactions. (Credit account titles are automatically indented when amount is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) (c) (d)

Answer 1

Journal entries

No	Account title and explanation	Debit	Credit
a	No Journal entry
b	Land	300000
	Common Stock (9500*10)		95000
	Paid in capital in excess of stated-Common Stock		205000
c	Cash (5800*110)	638000
	Preferred stock		580000
	Paid in capital in excess of par-Preferred stock		58000
d	Organization expense (170*58)	9860
	Common Stock		1700
	Paid in capital in excess of stated-Common Stock		8160