Question

Work Place Products Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 100,000 shares of 3% preferred stock, $65 par and 450,000 shares of $15 par common stock. The following selected transactions were completed during the first year of operations:

Journalize the transactions.

July. 1. Issued 100,000 shares of common stock at par for cash.

July. 1

July. 1 Issued 650 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.

July. 1

Aug. 7. Issued 22,500 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $61,000, $335,000, and $76,500, respectively.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Aug. 7

Sept. 20. Issued 23,000 shares of preferred stock at $80 for cash.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Sept. 20

Answer 1

July 1	Cash	1500000		=100000*15
	Common Stock		1500000
July 1	Organization expenses	9750		=650*15
	Common Stock		9750
Mar 9	Land	61000
	Buildings	335000
	Equipment	76500
	Common Stock		337500	=22500*15
	Paid in Capital in excess of par-Common Stock		135000
Sept 20	Cash	1840000		=23000*80
	Preferred Stock		1495000	=23000*65
	Paid in Capital in excess of par-Preferred Stock		345000