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ie bl .3 Der sharé and was issued for a total of $52,000. (d) The stock had a pa

ID: 2564770 • Letter: I

Question

ie bl .3 Der sharé and was issued for a total of $52,000. (d) The stock had a par value of $5 per share and was issued to attorneys for service during incorporation valued at $52,000. (e) The stock had a par value of $5 per share and was issued for land worth $52,000 of E13-5 Quay Co. had the following transactions during the current period. Mar. red stock sury stock. Issued 5,000 shares of $5 par value common stock to attorneys in payment of a bill for $30,000 for services performed in helping the company to incorporate. Issued 60,000 shares of $5 par value common stock for cash of $375,000. Issued 1,000 shares of $100 par value preferred stock for cash at $110 per share Purchased 2,000 shares of treasury stock for $80,000 2 June 12 July 11 Nov. 28

Explanation / Answer

Journal entries :

Date accounts & Explanation Debit Credit Mar 2 Attorney fees 30000     Common stock a/c 25000     Paid in capital in excess of par value 5000 (To record issue of common stock) June 12 Cash a/c 375000     Common stock a/c 300000     Paid in capital in excess of par value 75000 (To record issue of common stock) July 11 Cash a/c 110000      Preferred stock a/c 100000       Paid in capital in excess of par value 10000 (To record issue of preferred stock) Nov 28 Treasury stock a/c 80000      Cash a/c 80000 (To record treasury stock purchased)