Quay Co. had the following transactions during the current period. Purchased 2,2

Question

Quay Co. had the following transactions during the current period.

Purchased 2,290 shares of treasury stock for $76,000.

A) Journalize the transactions.

Mar. 2 Issued 4,900 shares of $5 par value common stock to attorneys in payment of a bill for $30,400 for services performed in helping the company to incorporate. June 12 Issued 59,500 shares of $5 par value common stock for cash of $362,500. July   11 Issued 2,500 shares of $120 par value preferred stock for cash at $140 per share. Nov. 28

Purchased 2,290 shares of treasury stock for $76,000.

A) Journalize the transactions.

Explanation / Answer

Journal Entries Date Particulars Dr Amt Cr Amt 2-Mar Organisation Cost Dr                   30,400.00 To Common Stock = 4900*5           24,500.00 To Additional Paid in capital = 30400 - 24500              5,900.00 12-Jun Cash                 362,500.00 To Common Stock = 59500*5         297,500.00 To Additional paid in capital = 362500 - 297500           65,000.00 11-Jul Cash Dr = 2500*140                 350,000.00 To Preferred Stock= 2500*120         300,000.00 To additional Paid in capital = 2500*20           50,000.00 28-Nov Treasury Stock Dr                   76,000.00 To Cash           76,000.00

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