Question

Autumn Corporation was organized in August. It is authorized to issue 100,000 shares of $100 par value 7% preferred stock. It is also authorized to issue 500,000 shares of $5 par value common stock. During the year, the corporation had the following transactions

August 22 - Issued 2,000 shares of preferred stock at $105 per share

September 3 - Issued 80,000 shares of common stock at $13.25 per share

October 11 - Issued 12,000 shared of common stock for land valued at $156,000. The stock is currently trading at $12 per share, and the stocks trading value is a more accurate determinant of the lands value.

November 12 - Issued 5,000 shares of common stock at $15 per share

December 5 - Issued 1,000 shares of preferred stock at $112 per share

Journalize the transactions

Answer 1

JOURNAL ENTRIES IN THE BOOKS OF AUTUMN CORPORATION

August.22 cash A/C Dr 2,10,000

To preffered stock A/C 2,00,000

To paid in capital in excess of parA/C 10000

(ISSUED PREFFERED STOCK)

September.3 cash A/C Dr 10,06,000

To common stockA/C 4,00,000

To paid in capital in excee of parA/C 606000

(ISSUED COMMON STOCK)

October.11 land A/C Dr 1,56,000

To common stockA/C 1,44,000(12,000*$12)

To paid in capital in excess of par A/C 12,000

(ISSUED COMMON STOCK FOR LAND)

November.12 cash A/C Dr 75,000

To common stock A/C 25000

To paid in capital in excess of par 50000

(ISSUED COMMON STOCK)

December.5 cash A/C Dr 1,12,000

To preffered stock A/C 1,00,0000

To paid in capital in excess of par A/C 12,000

(ISSUED PREFFERED STOCK)