Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. information world digest co organized on june 1, 2

Information World Digest Co organized on June 1, 2020 and is raising money by issuing...

90.2K

Verified Solution

Question

Accounting

Information World Digest Co organized on June 1, 2020 and is raising money by issuing bonds. The company is authorized to issue 200,000 shares of 4%, no par common stock with a stated value of $2 per share. They are also authorized to issue 50,000 shares of 6%, $50 par value, preferred stock.
The following transactions occurred during the first year of operations.
15-Jun-20 Issued 20,000 shares of common stock for cash at $22/share
15-Aug-20 Issued 20,000 shares of common stock for cash at $26/share
15-Nov-20 Issued 5,000 shares of preferred stock in return for legal services that otherwise would have cost $32,000.
1-Jan-21 Issued 60,000 shares of common stock in return for a storage warehouse listed for sale for $400,000 with a FMW of $360,000.
1-Feb-21 Issued 5,000 shares of preferred stock for cash at $55/share
Make the journal entries to record the transactions.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students