Kathleen Battle Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 80,000 shares of common stock for cash at $5 per share. Mar. 01 Issued 5,000 shares of preferred stock for cash at $108 per share. Apr. 01 Issued 24,000 shares of common stock for land. The asking price of the land was $90,000; the fair value of the land was $80,000. May 01 Issued 80,000 shares of common stock for cash at $7 per share. Aug. 01 Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize. Sept. 01 Issued 10,000 shares of common stock for cash at $9 per share. Nov. 01 Issued 1,000 shares of preferred stock for cash at $112 per share. Instructions Prepare the journal entries to record the above transactions.
Kathleen Battle Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 80,000 shares of common stock for cash at $5 per share. Mar. 01 Issued 5,000 shares of preferred stock for cash at $108 per share. Apr. 01 Issued 24,000 shares of common stock for land. The asking price of the land was $90,000; the fair value of the land was $80,000. May 01 Issued 80,000 shares of common stock for cash at $7 per share. Aug. 01 Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize. Sept. 01 Issued 10,000 shares of common stock for cash at $9 per share. Nov. 01 Issued 1,000 shares of preferred stock for cash at $112 per share. Instructions Prepare the journal entries to record the above transactions.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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Kathleen Battle Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 par value
Jan. | 10 | Issued 80,000 shares of common stock for cash at $5 per share. |
Mar. | 01 | Issued 5,000 shares of preferred stock for cash at $108 per share. |
Apr. | 01 | Issued 24,000 shares of common stock for land. The asking price of the land was $90,000; the fair value of the land was $80,000. |
May | 01 | Issued 80,000 shares of common stock for cash at $7 per share. |
Aug. | 01 | Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize. |
Sept. | 01 | Issued 10,000 shares of common stock for cash at $9 per share. |
Nov. | 01 | Issued 1,000 shares of preferred stock for cash at $112 per share. |
Instructions
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