Question

Practice Do It! Review 2 Swifty Corporation began operations on April 1 by issuing 59,000 shares of $5 par value common stock for cash at $14 per share. On April 19, it issued 2,400 shares of common stock to attorneys in settlement of their bill of $26,800 for organization costs. In addition, Swifty issued 1,100 shares of $1 par value preferred stock for $6 cash per share. Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded. (Record journal entries in the order presented in the problem. Credit account titles are automatically Indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit To record issuance of common stock for attorney's fees) (To record issuance of Preferred stock for cash)

Answer 1

Cash	826,000
Common stock		295,000
Paid in capital from common stock		531,000
Organization expenses	26800
Common stock		12000
Paid in capital from common stock		14800
Cash	6600
Preferred stock		1100
Paid in capital from preferred stock		5500

Comment if you face any issues