Concord Corporation was organized on January 1, 2017. It is authorized to issue

Question

Concord Corporation was organized on January 1, 2017. It is authorized to issue 9,400 shares of 8%, $100 par value preferred stock, and 537,000 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 80,740 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,980 shares of preferred stock for cash at $109 per share. Apr. 1 Issued 24,200 shares of common stock for land. The asking price of the land was $90,970; the fair value of the land was $80,740. May 1 Issued 80,740 shares of common stock for cash at $9 per share. Aug. 1 Issued 9,400 shares of common stock to attorneys in payment of their bill of $48,600 for services rendered in helping the company organize. Sept. 1 Issued 9,400 shares of common stock for cash at $11 per share. Nov. 1 Issued 1,080 shares of preferred stock for cash at $118 per share.

Explanation / Answer

Journal entry :

Date account & explanation debit credit Jan 10 Cash (80740*6) 484440 Common Stock 80740 Paid in capital in excess of stated value-Common Stock 403700 (To record issue common stock) Mar 1 cash (5980*109) 651820 Preferred stock 598000 Paid in capital in excess of par value-Preferred Stock 53820 (To record issue preferred stock) Apr 1 Land 90970 Common Stock 24200 Paid in capital in excess of stated value-Common Stock 66770 (To record common stock) May 1 Cash (80740*9) 726660 Common Stock 80740   Paid in capital in excess of stated value-Common Stock 645920 (To record Common Stock) Aug 1 Account payable 48600 Common Stock 9400   Paid in capital in excess of stated value-Common Stock 39200 (To record common stock) Sep 1 Cash (9400*11) 103400 Common Stock 9400   Paid in capital in excess of stated value-Common Stock 94000 (To record common Stock) Nov 1 Cash (1080*118) 127440 Preferred Stock 108000 Paid in capital in excess of par value-Preferred stock 19440 (To record preferred Stock)

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