Question

Issuing stock Chart of Accounts Journal Instructions Occupational Products inc, a wholesaler of office products, was organized on March 1 of the current year, with an authorization ot $100 par and 500,000 shares of $10 par common stock The following selected transactions were completed during the first year of operations Mar. 1 Issued 212,000 shares of common stock at par for cash. 1 Issued 300 shares of common stock at par to an atomey in payment of legal tees for organizing the corporation Issued 66,400 shares of common stock in exchange for land, buildings, and equipment with tair market prices of $148,100, $521,840 and $166,700 respectively Issued 15,000 shares of preferred stock at $108 for cash. May 31 Jul. 1 Journalze the transactions Refer to the Chart of Accounts for exact wording of account ties

Answer 1

Date Description Ref Debit Credit Mar-01 110 Cash 311 2,120,000 Common stock 2,120,000 (Being common stock issued at par) Mar-01 537 Organizational expense 311 3000 Common stock 3000 (Being 300 shares issued at par to attorney for the payment of organisation expense) May-31 181 191 Building 193 311 312 Land 148,100 521,840 166,700 Equipment 664,000 172,640 Common stock Paid up capital in excess of Par-common-stock (Being Land, building and equipment purchased) Jul-01 110 Cash 321 322 1,620,000 Preferred stock 1,500,000 120,000 Paid up capital in excess of Par-preferred-stock (Being 15,000 shares preferred stock issued at $108 per stock)