Question

4. A corporation was organized on January 30 of the current year, with an authorization of 20,000 shares of $4 preferred stock, $12 par, and 100,000 shares of $3 par common stock. REQUIRED (16 points) Prepare journal entries to record the following Jan. 30, 2021 Issued 15,000 shares of common stock at $23 per share for cash. Jan 31 Issued 1,200 shares of common stock at par to an attorney in payment of legal fees costing $6,000 for organizing the corporation. Feb. 24 Issued 20,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $65,000 $120,000, and $45,000 respectively. Mar. 15 Issued 2,000 shares of preferred stock at $56 for cash.

Answer 1

DATE	PARTICULARS	DEBIT($)	CREDIT($)
30/JAN/2021 31/JAN/2021 24/FEB/2021 15/Mar/2021	Cash      To common stock(15000@$3)      To additional paid in capital from common stock (To issue of common stock at par value $3) Legal fee for attorney       To Common stock(1200@$3)       To additional paid in capital from common stock (To legal attorney fee paid by issue of common stock ) Land Building equipment       To common stock (20000@$3)       To additional paid in capital from common stock (To issue of common stock in exchange of land,building,equipment) Cash       To preferred stock (2000@$12)      To additional paid in capital from preferred stock (issue of preferred stock at par )	345000 6000 65000 120000 45000 112000	45000 300000 3600 2400 60000 170000 24000 88000