Quay CO. had the following transactions during the current period. Mar 2 Issued
ID: 3009650 • Letter: Q
Question
Quay CO. had the following transactions during the current period.
Mar 2 Issued 5,000 shares of $5 per value common stock to attorneys in payment of a bill for $30,000 for services performed in helping the company to incorporate.
June 12: Issued 60,000 shares of $5 par value common stock for cash of $375.000
July11: Issued 1,000 shares of $100 par value preferred stock for cash at $110 per share.
Nov 28 : Purchased 2,000 shares of treasury stock for $80,000
Instructions: Journalize the transactions
Explanation / Answer
March 2
Organization cost $30000
Common stock $25000
Additional Paid - In Capital - Common $5000
Common Stock value 5000 * $5 = $25000
June 12
Cash $375000
Common stock $300000
Additional Paid - In Capital - Common $75000
Common Stock value 60000 * $5 = $300000
July 11
Cash $110000
Preferred stock $100000
Additional Paid - In Capital - Preferred $10000
November 28
Treasury stock $80000
Cash $80000