Question

Pip’s Pups incorporated on Jan 1, 2019. It is authorized to issue 10,000 shares of 6% $100 par PREFFERRED STOCK and 500,000 shares of $1 par value COMMON STOCK. The following STOCK Transactions were completed during the 1^st year of operations:

Jan 10:               Issued 75,000 shares of Common Stock for cash $8 per share

Mar 1:                Issued 5,000 shares of Preferred Stock for $100 per share Cash
Apr. 1:               Issued 24,000 shares of Common Stock for LAND. The sales price of the land was $100,000 and the fair Market Value was $120,000
May 1:               Issued 100,000 shares of Common Stock for Cash at $9 per share
Aug 1:                Issued 12,000 shares of Common Stock to attorneys in payment of their bill of $60,000 for services rendered in helping to organize the company

Required:
Record the above entries in the JOURNAL

Answer 1

Journal entries

Date	General Journal	Debit	Credit
Jan 10	Cash (75000*8)	600000
	Common Stock		75000
	Paid in capital in excess of par-Common Stock		525000
Mar 1	Cash (5000*100)	500000
	Preferred stock		500000
Apr 1	land	120000
	Common Stock		24000
	Paid in capital in excess of par-Common Stock		96000
May 1	Cash (100000*9)	900000
	Common Stock		100000
	Paid in capital in excess of par-Common Stock		800000
Aug 1	Organization expense	60000
	Common Stock		12000
	Paid in capital in excess of par-Common Stock		48000