Larkspur Corporation was organized on January 1, 2020. It is authorized to issue 9,600 shares of 8%, $100 par value preferred stock, and 501,500 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 Mar. 1 Apr. 1 May 1 Aug. 1 Sept. 1 Nov. 1 Issued 80,050 shares of common stock for cash at $6 per share. Issued 5,930 shares of preferred stock for cash at $113 per share. Issued 24,680 shares of common stock for land. The asking price of the land was $90,820; the fair value of the land was $80,050. Issued 80,050 shares of common stock for cash at $8 per share. Issued 9,600 shares of common stock to attorneys in payment of their bill of $50,400 for services rendered in helping the company organize. Issued 9,600 shares of common stock for cash at $10 per share. Issued 1,100 shares of preferred stock for cash at $115 per share. Prepare the journal entries to record the above transactions. (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 O for the amounts.)
Larkspur Corporation was organized on January 1, 2020. It is authorized to issue 9,600 shares of 8%, $100 par value preferred stock, and 501,500 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 Mar. 1 Apr. 1 May 1 Aug. 1 Sept. 1 Nov. 1 Issued 80,050 shares of common stock for cash at $6 per share. Issued 5,930 shares of preferred stock for cash at $113 per share. Issued 24,680 shares of common stock for land. The asking price of the land was $90,820; the fair value of the land was $80,050. Issued 80,050 shares of common stock for cash at $8 per share. Issued 9,600 shares of common stock to attorneys in payment of their bill of $50,400 for services rendered in helping the company organize. Issued 9,600 shares of common stock for cash at $10 per share. Issued 1,100 shares of preferred stock for cash at $115 per share. Prepare the journal entries to record the above transactions. (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 O for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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jaydip
Transcribed Image Text:Larkspur Corporation was organized on January 1, 2020. It is authorized to issue 9,600 shares of 8%, $100 par value preferred stock,
and 501,500 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
Mar.
1
Apr.
1
May
1
Aug.
1
Sept.
1
Nov.
1
Issued 80,050 shares of common stock for cash at $6 per share.
Issued 5,930 shares of preferred stock for cash at $113 per share.
Issued 24,680 shares of common stock for land. The asking price of the land was $90,820; the fair value of the land was
$80,050.
Issued 80,050 shares of common stock for cash at $8 per share.
Issued 9,600 shares of common stock to attorneys in payment of their bill of $50,400 for services rendered in helping the
company organize.
Issued 9,600 shares of common stock for cash at $10 per share.
Issued 1,100 shares of preferred stock for cash at $115 per share.
Prepare the journal entries to record the above transactions. (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 O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
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