Cash and Noncash Share Issuances Guild Corporation was organized on june 1. The

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Cash and Noncash Share Issuances Guild Corporation was organized on june 1. The company's charter authorizes 500.000 shares of ss par value common stock. On July 1. the attorney who helped organize the corporation accepted 600 shares of Guild common stock in settlement for the services provided (the services were valued at $7.600). On july 15, Guild issued 5.000 common shares for s65.000 cash. On September 15, Guild issued 2.000 common shares to acquire a vacant land site appraised at $28.000 Prepare the journal entries to record the stock issuances on july 1.July 15, and September 15. General Journal Date Description Debit Credit July 1 Common stock Issued common shares in exchange for legal services July 15 ommon stock Issued common shares for cash Sept. 15

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit July 1 Organisation fees 7600 Common stock (600*5) 3000 Paid in capital in excess of par value-common stock 3600 (To record common stock in exchange of legal fees) July 15 Cash 65000 Common stock 25000      Paid in capital in excess of par value-common stock 40000 (To record issued common share for cash) Sep 15 Land 28000 common stock (2000*5) 10000   Paid in capital in excess of par value-common stock 18000 (To record issued common shares for land)

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