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Issuing Stock willow Creek Nursery, with an authorization of 27,000 shares of preferred stock and 150,000 shares of common stock, completed several transactions involving its stock on october 1, the first day of operations. The trial balance at the close of the day follows Cash Land Buildings Preferred 2% Stock, $100 par Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $40 par Paid-in Capital in Excess of Par-Common Stock 542,800 122,000 249,000 50,000 21,000 363,000 174,800 913,800 913,800 All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings. Dournalize the entries to record the (1) common and (2) preferred stock transactions summarized in the trial balance If an amount box does not require an entry, leave it blank. If an amount box does not require an entry, leave it blank KPr PreviousNext Check My Work t more Check My Work uses remaining

Answer 1

Journalizing:
Date	Accounts Titles	Debit $	Credit $
1	Cash	542800
	Common Stock		368000
	Paid in capital in excess of Par - CS		174800
	(being issue of common shares for cash)
2	Land	122000
	Buildings	249000
	Preferred Stock		350000
	Paid in capital in excess of Par - PS		21000
	(being issue of preferred shares for land and building purchase)