EX 13-8 Issuing stock

Baird Products Inc., a wholesaler of office products, was organized on January 30 of the current year, with an authorization of 80,000 shares of 2% preferred stock, $75 par and 800,000 shares of $20 par common stock. The following selected transactions were completed during the first year of operations:

Jan. 30. Issued 300,000 shares of common stock at par for cash.

31. Issued 750 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.

Feb. 21. Issued 32,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $150,000, $460,000, and $90,000, respectively.

Mar. 2. Issued 15,000 shares of preferred stock at $77.50 for cash.

Journalize the transactions.


Answer:

Jan. 30 Cash ...................................................................... 6,000,000
 Common Stock (300,000 × $20) ..................... 6,000,000
 31 Organizational Expenses..................................... 15,000
 Common Stock (750 × $20) ............................ 15,000
Feb. 21 Land ...................................................................... 150,000
 Buildings............................................................... 460,000
 Equipment............................................................. 90,000
 Common Stock (32,000 × $20) ....................... 640,000
 Paid-In Capital in Excess of Par—
 Common Stock .......................................... 60,000
Mar. 2 Cash ...................................................................... 1,162,500
 Preferred Stock (15,000 × $75)....................... 1,125,000
 Paid-In Capital in Excess of Par—
 Preferred Stock.......................................... 37,500 

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