Question

Hao Corporation had the following transactions during the current period.

Mar. 2		Issued 27,000 common shares to its legal counsel in payment of a bill for $21,000 for services performed in helping the company incorporate.
June 12		Issued 70,000 common shares for $435,000 cash.
July 11		Issued 2,400, $3 noncumulative preferred shares at $110 per share cash.
Nov. 28		Issued 4,800, $3 noncumulative preferred shares at $91 per share cash.

Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
Mar. 2June 12July 11Nov. 28
Mar. 2June 12July 11Nov. 28
Mar. 2June 12July 11Nov. 28
Mar. 2June 12July 11Nov. 28

Answer 1

The following journal entries will be passed:
Date	General Journal	Debit	Credit
March 2	Legal fees	$21,000
	Common stock		$21,000
	(Being issuance of shares for legal services obtained)
June 12	Cash	$435,000
	Common stock		$435,000
	(Being issuance of shares for cash)
July 11	Cash (2,400 shares x $110 per share)	$264,000
	Preferred stock (2,400 shares x $3 per share)		$7,200
	Paid in capital in excess of par value - Preferred stock		$256,800
	(Being issuance of preferred stock for cash)
Nov 28	Cash (4,800 shares x $91 per share)	$436,800
	Preferred stock (4,800 shares x $3 per share)		$14,400
	Paid in capital in excess of par value - Preferred stock		$422,400
	(Being issuance of preferred stock for cash)