Correnbon is authorized to issue 100,000 shares of S5 stated value common stock
ID: 2453493 • Letter: C
Question
Correnbon is authorized to issue 100,000 shares of S5 stated value common stock and 2000 shares of S100 par value. 6 percent preferred stock. Prepare journal entries without explanations to record the following transactions: July 15 Issued 1.000 shares of common stock to an attorney for a bill of $7,000 in connection with the organization of the corporation. 25 Issued 2.000 shares of preferred stock for cash of SI20 per share. 27 Issued 10,000 shares of common stock in exchange for land for a plant site valued at 575.000. Aug. 1 Issued 5.000 shares of common stock for $35,000 in cash.Explanation / Answer
journal entry
date description debit credit july15 bill a/c 7000
to shares of common stock 7000
(being issue 1000 shares of common stock for bill)
july 25 cash a/c 240000
to preffered stock 240000
( being issue 2000 preffered stock for cash of $120/share)
july27 land for plant site 75000
to 10000 shares of common stock 75000
(being issue 10000 shares of common stock)
aug1 cash a/c 35000
to 5000 shares of common stock 35000
(being issue 5000 shares of common stock for cash)