Question

Entries for Issuing Stock On January 22, Limerick Corporation issued for cash 26,000 shares of no-par common stock at $30. On February 14, Limerick issued at par 7,000 shares of 7%, $60 par preferred stock for cash. On August 30, Limerick Corporation issued for cash 12,000 shares of preferred 7% stock, $60 par at $65. Journalize the entries to record the January 22, February 14, and August 30 transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 22 Cash Common Stock Feb. 14 Cash Preferred Stock Aug. 30 Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock

Answer 1

Journal entry :

Date	account and explanation	debit	credit
Jan 22	Cash (26000*30)	780000
	COmmon Stock		780000
	(To record issue common Stock)
Feb 14	Cash (7000*60)	420000
	Preferred Stock		420000
	(To record issue preferred Stock)
Aug 30	Cash (12000*65)	780000
	Preferred Stock (12000*60)		720000
	Paid-In Capital in Excess of Par-Preferred Stock		60000
	(To record issue preferred Stock)