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

Question

Cash and Noncash Share Issuances
Guild Corporation was organized on June 1. The company's charter authorizes 500,000 shares of $5 par value common stock. On July 1, the attorney who helped organize the corporation accepted 1,080 shares of Guild common stock in settlement for the services provided (the services were valued at $13,680). On July 15, Guild issued 9,000 common shares for $117,000 cash. On September 15, Guild issued 3,600 common shares to acquire a vacant land site appraised at $50,400

Prepare the journal entries to record the stock issuances on July 1, July 15, and September 15.

Explanation / Answer

Journal entries :

date accounts & explanation debit credit July 1 Attorney fees a/c 13680        common stock a/c 5400       paid in capital in excess of par value-common stock 8280 July 15 Cash a/c 117000     Common stock a/c (9000*5) 45000     paid in capital in excess of par value-common stock 72000 Sep 15 Land a/c 50400      Common stock a/c (3600*5) 18000      paid in capital in excess of par value-common stock 32400

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