Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (recording the issuance of common and preferred st

(recording the issuance of common and preferred stock) Kathleen Battle Corporation was organized on January...

80.2K

Verified Solution

Question

Accounting

(recording the issuance of common and preferred stock)

Kathleen Battle Corporation was organized on January 1, 2017. It is authorized to issue 10,000 shares at 8%, $100 par value perferred stock, and 500,000 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 80,000 shares of common stock for cash at $5 per share

March 1 - issued 5,000 shares of perferred stock for cash at $108 share

April 1 - issued 24,000 shares of common stock for land. The asking price of the land was $90,000, the fair value of the land was s$80,000

May 1 - Issued 80,000 shares of common stock for cas at $7 per share

Aug. 1 - Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize.

Sept 1 - issued 10,000 shares of common stock for cash at $9 per share

Nov. 1 - issued 1,000 shares of preferred stock for cash at $112 per share

Instructions: Prepare the journal entries to record the above 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