Willow Creek Nursery, with an authorization of 73,000 shares of preferred stock and 180,000 shares of common stock, completed several transactions involving its stock on October 1, the first day of operations. The trial balance at the close of the day follows: Willow Creek Nursery UNADJUSTED TRIAL BALANCE October 1, 20-- ACCOUNT TITLE DEBIT CREDIT 1 Cash 3,978,000.00 2 Land 862,000.00 3 Buildings 1,922,000.00 4 Preferred 1% Stock, $80 par 2,560,000.00 5 Paid-In Capital in Excess of Par-Preferred Stock 224,000.00 6 Common Stock, $30 par 3,510,000.00 7 Paid-In Capital in Excess of Par-Common Stock 468,000.00 8 Totals 6,762,000.00 6,762,000.00 All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings. Journalize the two entries to record the transactions summarized in the trial balance. Refer to the Chart of Accounts for exact wording of account titles.

Willow Creek Nursery, with an authorization of 73,000 shares of preferred stock and 180,000 shares of common stock, completed several transactions involving its stock on October 1, the first day of operations. The trial balance at the close of the day follows: Willow Creek Nursery UNADJUSTED TRIAL BALANCE October 1, 20-- ACCOUNT TITLE DEBIT CREDIT 1 Cash 3,978,000.00 2 Land 862,000.00 3 Buildings 1,922,000.00 4 Preferred 1% Stock, $80 par 2,560,000.00 5 Paid-In Capital in Excess of Par-Preferred Stock 224,000.00 6 Common Stock, $30 par 3,510,000.00 7 Paid-In Capital in Excess of Par-Common Stock 468,000.00 8 Totals 6,762,000.00 6,762,000.00 All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings. Journalize the two entries to record the transactions summarized in the trial balance. Refer to the Chart of Accounts for exact wording of account titles.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 6EB: Spring Company is authorized to issue 500,000 shares of $2 par value common stock. In its first...

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	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	3,978,000.00
2	Land	862,000.00
3	Buildings	1,922,000.00
4	Preferred 1% Stock, $80 par		2,560,000.00
5	Paid-In Capital in Excess of Par-Preferred Stock		224,000.00
6	Common Stock, $30 par		3,510,000.00
7	Paid-In Capital in Excess of Par-Common Stock		468,000.00
8	Totals	6,762,000.00	6,762,000.00

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