Question

Carla Corporation was organized on January 1, 2017. It is authorized to issue 9,900 shares of 8%, $100 par value preferred stock, and 533,900 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 80,970 shares of common stock for cash at $6 per share.
Mar. 1		Issued 5,600 shares of preferred stock for cash at $111 per share.
Apr. 1		Issued 24,810 shares of common stock for land. The asking price of the land was $92,000; the fair value of the land was $80,970.
May 1		Issued 80,970 shares of common stock for cash at $8 per share.
Aug. 1		Issued 9,900 shares of common stock to attorneys in payment of their bill of $47,000 for services rendered in helping the company organize.
Sept. 1		Issued 9,900 shares of common stock for cash at $10 per share.
Nov. 1		Issued 1,010 shares of preferred stock for cash at $123 per share.

Prepare the journal entries to record the above 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.)

Answer 1

Date	General Journal	Debit	Credit
Jan-10	Cash (80,970 * $6)	$   485,820
	Common stock (80,970*$1)		$     80,970
	Additional paid in capital in excess of stated value - Common stock		$   404,850
Mar-01	Cash (5,600*$111)	$   621,600
	Preferred stock (5,600*$100)		$   560,000
	Additional paid in capital in excess of par value - Preferred stock		$     61,600
Apr-01	Land	$     80,970
	Common stock (24,810*$1)		$     24,810
	Additional paid in capital in excess of stated value - Common stock		$     56,160
May-01	Cash (80,970 * $8)	$   647,760
	Common stock (80,970*$1)		$     80,970
	Additional paid in capital in excess of stated value - Common stock		$   566,790
Aug-01	Incorporation charges / Legal charges	$     47,000
	Common stock (9,900*$1)		$       9,900
	Additional paid in capital in excess of stated value - Common stock		$     37,100
Sep-01	Cash (9,900 * $10)	$     99,000
	Common stock (9,900*$1)		$       9,900
	Additional paid in capital in excess of stated value - Common stock		$     89,100
Nov-01	Cash (1,010*$123)	$   124,230
	Preferred stock (1,010*$100)		$   101,000
	Additional paid in capital in excess of par value - Preferred stock		$     23,230

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