Ergonomics Supply Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 80,000 shares of preferred 2% stock, $70 par, and 900,000 shares of $11 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions. July 1. Issued 260,000 shares of common stock at par for cash. If an amount box does not require an entry, leave it blank. July 1. Common Stock July 1. Issued 2,000 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. If an amount box does not require an entry, leave it blank. July 1. Organizational Expenses 900,000 Common Stock 900,000 Aug. 7. Issued 60,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $320,000, $550,000, and $90,000, respectively. If an amount box does not require an entry, leave it blank. Aug. 7. Land 80,000 Buildings 900,000 Common Stock 660,000 Paid-In Capital in Excess of Par-Preferred Stock 12,000 Sept. 20. Issued 30,000 shares of preferred stock at $74 for cash. If an amount box does not require an entry, leave it blank. Sept. 20. Cash 2,220,000 Preferred Stock 2,100,000 Paid-In Capital in Excess of Par-Common Stock 120,000
Ergonomics Supply Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 80,000 shares of preferred 2% stock, $70 par, and 900,000 shares of $11 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions. July 1. Issued 260,000 shares of common stock at par for cash. If an amount box does not require an entry, leave it blank. July 1. Common Stock July 1. Issued 2,000 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. If an amount box does not require an entry, leave it blank. July 1. Organizational Expenses 900,000 Common Stock 900,000 Aug. 7. Issued 60,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $320,000, $550,000, and $90,000, respectively. If an amount box does not require an entry, leave it blank. Aug. 7. Land 80,000 Buildings 900,000 Common Stock 660,000 Paid-In Capital in Excess of Par-Preferred Stock 12,000 Sept. 20. Issued 30,000 shares of preferred stock at $74 for cash. If an amount box does not require an entry, leave it blank. Sept. 20. Cash 2,220,000 Preferred Stock 2,100,000 Paid-In Capital in Excess of Par-Common Stock 120,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ergonomics Supply Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 80,000 shares of preferred 2% stock, $70 par, and 900,000 shares of $1 par
common stock. The following selected transactions were completed during the first year of operations:
Journalize the transactions.
July 1. Issued 260,000 shares of common stock at par for cash. If an amount box does not require an entry, leave it blank.
July 1.
Common Stock
July 1. Issued 2,000 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. If an amount box does not require an entry, leave it blank.
July 1. Organizational Expenses
900,000
Common Stock
900.000
Aug. 7. Issued 60,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $320,000, $550,000, and $90,000, respectively. If an amount box does not require an
entry, leave it blank.
Aug. 7.
Land
80,000
Buildings
900,000
Common Stock
660,000
Paid-In Capital in Excess of Par-Preferred Stock
12,000
Sept. 20. Issued 30,000 shares of preferred stock at $74 for cash. If an amount box does not require an entry, leave it blank.
Cash
Sept. 20.
2,220,000
Preferred Stock
2,100,000
Paid-In Capital in Excess of Par-Common Stock
120,000
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