Question

h 6 of 7 Current Artemin Progress Presented below is information related to Wick Company 1 The company is granted a charter that there are 15.000 shares of $100 preferred to 0.00 shares of par common stock 2. 9.500 shares of common stock are sued to the founders of the corporation for landed by the board of directions $310.000 The board establishes a stated value of $10 share for the common stock 2 5.600 shares of preferred stock are sold for cash at $150 pershare 4 The company issues 170 shares of common stock to its attorneys for costs ww.ciated with starting the company that time, the common stock was seting at 555 pershare. Prepare the general journal entries necessary to record these transactions. Orices are sutomatically indeed when amount is entered Do not inden manlyno entry is required select "No Entry for the countries and enter for the amounts No. Account Tities and Explanation Debit Credit (a) (b) MacBook Air (c)

Answer 1

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Naming convention and format are not available, can be slightly different: Solution: Journal entries Date Debit Credit a) Account title and explaination No Entry No Entry $ $ b) 310000 $ 95,000 215000 c) 616000 Land Common stock (9500*10) Paid in capital in excess of stated value (310000-95000) (To record the issuance of common stock) Cash (5600*110) Preferred Stock (5600*100) Paid in capital in excess of par - Preferred stock (plug) (To record the issuance of preferred stock) Organizational expense / Legal Expense (170*55) Common stock (170*10) Paid in capital in excess of stated value (plug) (To record the issuance of common stock to attorneys) 560000 $ 56,000 d) $ $ 9,350 $ $ 1,700 7,650