Question

Indigo Corporation, a private corporation, was organized on February 1, 2020. It is authorized to issue 100,000, $6 noncumulative preferred shares, and an unlimited number of common shares. The following transactions were completed during the first year:

Feb.	10		Issued 81,000 common shares at $5.00 per share.
Mar.	1		Issued 5,100 preferred shares at $114 per share.
Apr.	1		Issued 21,900 common shares for land. The land's asking price was $121,500 and its appraised value was $109,500.
June	20		Issued 79,000 common shares at $4.50 per share.
July	7		Issued 11,100 common shares to lawyers to pay for their bill of $49,950 for services they performed in helping the company organize.
Sept.	1		Issued 10,800 common shares at $5.00 per share.
Nov.	1		Issued 1,300 preferred shares at $116 per share.

Answer 1

Date	Account Titles	Debit $	Credit $
Feb.10	Cash	405,000
	Common Shares		405,000
	(81,000 x 5 )
Mar.1	Cash	581,400
	Preferred shares		581,400
	(5,100 x 114 )
Apr.1	Land	109,500
	Common Shares		109,500
June.20	Cash	355,500
	Common Shares		355,500
	(79,000 x 4.50 )
July.7	Organization Expense	49,950
	Common Shares		49,950
Sept.1	Cash	54,000
	Common Shares		54,000
	(10,800 x 5 )
Nov.1	Cash	150,800
	Preferred shares		150,800
	( 1,300 x 116 )