Question

Teal Corporation was organized on January 1, 2017. It is authorized to issue 9,400 shares of 8%, $100 par value preferred stock, and 537,000 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 80,740 shares of common stock for cash at $6 per share.
Mar. 1		Issued 5,980 shares of preferred stock for cash at $109 per share.
Apr. 1		Issued 24,200 shares of common stock for land. The asking price of the land was $90,970; the fair value of the land was $80,740.
May 1		Issued 80,740 shares of common stock for cash at $9 per share.
Aug. 1		Issued 9,400 shares of common stock to attorneys in payment of their bill of $48,600 for services rendered in helping the company organize.
Sept. 1		Issued 9,400 shares of common stock for cash at $11 per share.
Nov. 1		Issued 1,080 shares of preferred stock for cash at $118 per share.

Prepare the journal entries to record the above transactions.

Answer 1

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Ignore the order of commas in amount: Ignore the explanation line while putting answer in the question format: Solution: ournal entries Date Account title and explaination DebitCredit Jan.10 Cash (80740*6) $4,84,440 Common Stock (80740*1) Paid in Capital in excess of par - Common Stock To record the issuance of common stock) $ 80,740 $4,03,700 (plug) Mar.01 Cash (5980 109) $6,51,820 Preferred Stock (5980 100) Paid in Capital in excess of par - Preferred Stock To record the issuance of preferred stock) $5,98,000 $ 53,820 (plug) Apr.01 Land $ 80,740 Common Stock (24200*1) Paid in Capital in excess of par - Common Stock To record the issuance of common stock) $24,200 $ 56,540 (plug) May.01 Cash (80740 *9) $7,26,660 Common Stock (80740*1) Paid in Capital in excess of par - Common Stock(plug) To record the issuance of common stock) $ 80,740 $6,45,920 Aug.01 Organization expense S 48,600 Common Stock Paid in Capital in excess of par - Common Stock To record the issuance of common stock) $ 9,400 $ 39,200 (plug) Sep.01 Cash (9400*11) $1,03,400 Common Stock (9400*1) Paid in Capital in excess of par - Common Stock(plug) To record the issuance of common stock) $ 9,400 S 94,000

Nov.01 Cash (1080*118) $1,27,440 Preferred Stock 1080 100) $1,08,000 $ 19,440 To record the issuance of preferred stock)