Question 1 coronado corporation was organized on January 1, 2017. It is authoriz

Question

Question 1 coronado corporation was organized on January 1, 2017. It is authorized to issue 10,600 shares of 8%, $100 par value preferred stock, and 538,200 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 80,710 shares of common stock for cash at $7 per share Mar. 1 Issued 6,000 shares of preferred stock for cash at $113 per share. Apr. 1 Issued 24,600 shares of common stock for land. The asking price of the land was $91,730; the fair value of the land was $80,710 May Issued 80,710 shares of common stock for cash at $9 per share Aug.1 Issued 10,600 shares of common stock to attorneys in payment of their bill of $48,100 for services rendered in helping the company organize. Sept. 1 Issued 10,600 shares of common stock for cash at $11 per share. Nov. 1 Issued 990 shares of preferred stock for cash at $117 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit an. 10 Cash

Explanation / Answer

JAN-10

a) Bank A/C Dr. (for the amount received on application) 564970 To Share Application A/C 564970 b) Share Application A/C (with the application money on the allotted shares) 564970 To Share capital A/C 564970 c) Share application A/C (with the application money+premium amount) 564970 To share capital A/C 80710 To Security Premium A/C 484260

MAR-1

a)  Bank A/C Dr. (for the amount received on application) 678000 To Prefered Stock A/C 678000 b) 8% Prefered Stock A/C (with the application money on the allotted) 678000 To Share capital A/C (prefered stock) 678000 c) 8% Prefered Stock A/C (with the application money+premium amount) 678000 To share capital A/C 600000 To Security Premium A/C 78000

APR-1

a) Share application A/C (with the application money+premium amount) 91730 To share capital A/C 24600 To Security Premium A/C 67130

MAY-1

a) Share application A/C (with the application money+premium amount) 726390 To share capital A/C 80710 To Security Premium A/C 645680

AUG-1

a) Attorney's Bill A/C Dr. (With the payment of bill on alloting shares on permium) 48100 To Share capital A/c 10600 To security Premium A/C 37500

SEPT-1

a) Share application A/C (with the application money+premium amount) 116600 To share capital A/C 10600 To Security Premium A/C 106000

NOV-1

a) 8% Prefered Stock A/C (with the application money+premium amount)     115830 To share capital A/C 99000 To Security Premium A/C 16830

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