Question

Based on the following information from Castle Keys Corporation, prepare the appropriate journal entries.

           April 10            Incurred organization costs totaling $4,200.

                    12            Issued 9,000 shares of $10-par common stock for $110,000.

                    25            Issued 3,500 shares of 7%, $30-par preferred stock for $115,000.

                    30            Issued 6,000 shares of $10-par common stock for $65,000

            May 15              Issued 3,000 shares of 7%, $30-pare preferred stock for equipment with a fair market value of $93,000.

Answer 1

Date	Account	Debit	Credit
Apr 10	Organization expenses	4,200
	Cash		4,200
Apr 12	Cash	110,000
	Common stock (9,000*10)		90,000
	Additional paid in capital, common stock		20,000
Apr 25	Cash	115,000
	Preferred stock (3500*30)		105,000
	Additional paid in capital, preferred stock		10,000
Apr 30	Cash	65,000
	Common stock (6000*10)		60,000
	Additional paid in capital, common stock		5,000
May 15	Equipment	93,000
	Preferred stock (3000*30)		90,000
	Additional paid in capital, preferred stock		3,000