Question

Exercise 11-7

Quay Co. had the following transactions during the current period.

Mar.	2		Issued 4,400 shares of $5 par value common stock to attorneys in payment of a bill for $26,800 for services performed in helping the company to incorporate.
June	12		Issued 55,700 shares of $5 par value common stock for cash of $345,400.
July	11		Issued 2,700 shares of $110 par value preferred stock for cash at $130 per share.
Nov.	28		Purchased 2,200 shares of treasury stock for $84,700.

Journalize the transactions. (Record journal entries in the order presented in the problem. 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.)

Date	Account Titles and Explanation	Debit	Credit
Mar. 2June 12July 11Nov. 28
Mar. 2June 12July 11Nov. 28
Mar. 2June 12July 11Nov. 28
Mar. 2June 12July 11Nov. 28

Answer 1

Date	Account	Debit	Credit
Mar 2	Organization expenses	26,800
	Common stock (4,400*5)		22,000
	Additional paid in capital - Common stock		4,800
June 12	Cash	345,400
	Common stock (55,700*5)		278,500
	Additional paid in capital - Common stock		66,900
July 11	Cash	351,000
	Preferred stock (2700*110)		297,000
	Additional paid in capital - Preferred		54,000
Nov 28	Treasury stock	84,700
	Cash		84,700