Question

Vaughn Manufacturing had the following transactions during the current period.

Mar.	2		Issued 3,900 shares of $5 par value common stock to attorneys in payment of a bill for $23,400 for services performed in helping the company to incorporate.
June	12		Issued 67,500 shares of $5 par value common stock for cash of $421,875.
July	11		Issued 1,000 shares of $100 par value preferred stock for cash at $109 per share.
Nov.	28		Purchased 2,100 shares of treasury stock for $84,000.

Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when 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.)

Answer 1

Journal Entry:

Date	Account Name	Debit	Credit
Mar.2	Attorneys Expense	$ 23,400
	To Common Stock (3900×$5)		$19,500
	To Additional Paid In Capital - Common stocks		$ 3900
Jun12	Cash	$ 421,875
	To Common Stock ( 67,500 × $5)		$337,500
	To Additional Paid in Capital -Common Stocks		$84,375
Jul 11	Cash ( 1000 ×$109)	$109,000
	To Preferred stock ( 1000 ×$100)		$ 100,000
	To Additional Paid in capital - Preferred stock ( 1000 ×$9)		9,000
Nov.28	Treasury Stock	$ 84,000
	To Cash		$ 84,000