Question

Fil Hamilton Corporation was authorized to issue 20,000 shares of $100 par value, 5% preferred stock and 50,000 share of $1 par common stock. Record the following transactions: • Issued 5,000 shares of common stock for $40 per share • Issued 500 shares of common stock at $19 per share for services rendered in connection with the organization of the company • Issued 5,000 shares of common stock for a building on which the asking price was $325,000. Market value of the stock was $50. Management wishes to record the land at the market price of the stock. • Issued 1,000 shares of Preferred stock at $125 per share • Issued 6,000 shares of common stock for $40 per share • Issued 8,000 shares of preferred stock for $130 per share Tin DE Av 3 U S X, X B В І : 22 1144 19 59 FB 7 DDD ggg F4 F6 F5 F3 F2 esc F1 & % $ # @ 8 7 6 5 4 3 1 2

Answer 1

No. 1) 2) 3) General Journal Debit Credit Cash $200,000 (5,000 shares x $40] Common Stock $5,000 (5,000 shares x $1] Paid-in-Capital in Excess of Par-Common $195,000 (Bal. figure --> $200000 - $5000 = $195000] Organization Expense $9,500 [500 shares x $19] Common Stock $500 (500 shares x $1] Paid-in-Capital in Excess of Par-Common $9,000 (Bal. figure --> $9500 - $500 = $9000] Building $250,000 [5,000 shares x $50] Common Stock $5,000 (5,000 shares x $1] Paid-in-Capital in Excess of Par-Common $245,000 (Bal. figure --> $250000 - $5000 = $245000] Cash $125,000 [1,000 shares x $125] Preferred Stock $100,000 (1,000 shares x $100] Paid-in-Capital in Excess of Par-Preferred $25,000 [Bal. figure --> $125000 - $100000 = $25000] Cash $240,000 [6,000 shares x $40] Common Stock $6,000 (6,000 shares x $1] Paid-in-Capital in Excess of Par-Common $234,000 (Bal. figure --> $240000 - $6000 = $234000] Cash $1,040,000 [8,000 shares x $130] Preferred Stock $800,000 [8,000 shares x $100] Paid-in-Capital in Excess of Par-Preferred $240,000 (Bal. figure --> $1040000 - $800000 = $240000] 4) 5) 6)