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Fagan Co. had these transactions during the current period. Prepare the journal

ID: 2497271 • Letter: F

Question

Fagan Co. had these transactions during the current period.


Prepare the journal entries for the Fagan Co. transactions shown above. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

June 12 Issued 87,400 shares of $1 par value common stock for cash of $327,750. July 11 Issued 4,250 shares of $100 par value preferred stock for cash at $105 per share. Nov. 28 Purchased 2,820 shares of treasury stock for $7,850.

Explanation / Answer

JOURNAL ENTRIES 12-Jun Cash Account A/c Dr. 327750 To Common Stock Account 87400 To Securities Premium Account 240350 (Being Stock issued) 11-Jul Cash Account A/c 446250 To Preferred Stock Account 425000 To Securities Premium Account 21250 (Being Stock issued) 28-Nov Investment in Treasury Stock Account Dr. 7850 To Cash Account 7850 (Being Investment made)