Quay Co. had the following transactions during the current period. Mar. 2 Issued
ID: 2475758 • Letter: Q
Question
Quay Co. had the following transactions during the current period. Mar. 2 Issued 4,200 shares of $7 par value common stock to attorneys in payment of a bill for $33,700 for services performed in helping the company to incorporate. June 12 Issued 59,900 shares of $7 par value common stock for cash of $496,200. July 11 Issued 2,550 shares of $120 par value preferred stock for cash at S130 per share. Nov. 28 Purchased 3,350 shares of treasury stock for $80,500. Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)Explanation / Answer
Journal Entries:
Date
Account Titles and Explanations
Debit
Credit
Mar. 2
Pre- incorporations expenses
$ 33,700.00
Common Stock (4200 Shares *$7)
$ 29,400.00
Paid in capital in excess of par value - Common Stock (33700-29400)
$ 4,300.00
(Being common shares issued as a payment for incorporation expenses)
June. 12
Cash
$496,200.00
Common Stock (59900 Shares *$7)
$419,300.00
Paid in capital in excess of par value - Common Stock (496200-419300)
$ 76,900.00
(Being common shares issued for cash)
July. 11
Cash (2550 Shares * $130)
$331,500.00
Preferred Stock (2550 Shares * $120)
$306,000.00
Paid in capital in excess of par value - Preferred Stock (331500-306000)
$ 25,500.00
(being preferred stock issued for cash)
Nov. 28
Treasury Stock
$ 80,500.00
Cash
$ 80,500.00
(Being treasury stock purchased)
Journal Entries:
Date
Account Titles and Explanations
Debit
Credit
Mar. 2
Pre- incorporations expenses
$ 33,700.00
Common Stock (4200 Shares *$7)
$ 29,400.00
Paid in capital in excess of par value - Common Stock (33700-29400)
$ 4,300.00
(Being common shares issued as a payment for incorporation expenses)
June. 12
Cash
$496,200.00
Common Stock (59900 Shares *$7)
$419,300.00
Paid in capital in excess of par value - Common Stock (496200-419300)
$ 76,900.00
(Being common shares issued for cash)
July. 11
Cash (2550 Shares * $130)
$331,500.00
Preferred Stock (2550 Shares * $120)
$306,000.00
Paid in capital in excess of par value - Preferred Stock (331500-306000)
$ 25,500.00
(being preferred stock issued for cash)
Nov. 28
Treasury Stock
$ 80,500.00
Cash
$ 80,500.00
(Being treasury stock purchased)