Question

On April 10, a company acquired land valued at $58,000 in exchange for 1,000 shares of $50 par common stock with a current market price of $57. Journalize this transaction. 3. 4. A corporation was organized on January 30 of the current year, with an authorization of 20,000 shares of $3 noncumulative preferred stock, $50 par, and 100,000 shares of $10 par common stock. Jounalize the following transactions that were completed during the first year of operations: Jan. 30 Issued 20,000 shares of common stock at par for cash. Feb. 24 Issued 20,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $52,000, $125,000, and $48,000 respectively Mar. 15 Issued 2,000 shares of preferred stock at $54 for cash.

Answer 1

AAns:

    Land A/c                     Dr 58000

              To Common Stock             50000

              To Premium paid on Common Stock                      8000

(Being land received in exchange of common stock)

Ans 4:

June 30           Cash A/c    Dr                            200000
                To Common Stock                   200000

                            (BEING stock issued against cash)

Feb 24                    Land A/c                           Dr      52000

                                 Building A/c                     Dr      125000

                                  Equipment A/c                Dr        48000

                                        To common stock                                         200000

                                          To Premium paid on common stock             25000

(being asset received in exchange of common Stock)

Mar 15           Cash A/c                    Dr 108000

               To Prefered Stock             100000

            To Premium paid on Prefered Stock                        8000

(Being prefered stock issued for cash)