Question

Obj. 2 Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 50,000 shares of preferred 2% stock, $40 par and 1,000,000 shares of $8 par common stock. The following selected transactions were completed during the first year of operations: Feb. 5. Issued 600,000 shares of common stock at par for cash. 5. Issued 1,500 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. Apr. 9. Issued 45,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $100,000, $310,000, and $85,000 respectively. June 14. Issued 30,000 shares of preferred stock at $53 for cash. Journalize the transactions.

Please show any and all calculations. Thank you!

Answer 1

Feb. 5	Cash	4800000		=600000*8
	Common Stock		4800000
Feb. 5	Organizational Expense	12000		=1500*8
	Common Stock		12000
Apr. 9	Land	100000
	Buildings	310000
	Equipment	85000
	Common Stock		360000	=45000*8
	Paid-In Capital in Excess of Par-Common Stock		135000
June 14	Cash	1590000		=30000*53
	Preferred Stock		1200000	=30000*40
	Paid-In Capital in Excess of Par-Preferred Stock		390000