On December 27, 2010, Glade Company was authorized to issue 250,000 shares of va

Question

On December 27, 2010, Glade Company was authorized to issue 250,000 shares of valu lize stock ces for cash, s (organization and property; 2011 e resulting sheet (Lo.s) Ja. 14 Issued 45,000 shares of common stock at $30 per share for cash e common stock. It then completed the following transactions: Jan. 29 Gave the promoters of the corporation 25,000 shares of common stock e services in organizing the company. The board of directors valued thes at $744,000. Exchanged 50,000 shares of common stock for the following assets at the indicated fair market values: 19 Land Building Machinery $216,000 528,000 720,000 Requireda. Prepare general journal entries to record the transactions. b. Prepare the balance sheet of the company as of March 1, 2011.

Explanation / Answer

Journal entries :

Balance sheet :

date accounts & explanation debit credit Jan 14 Cash a/c (45000*30) 1350000 Common stock a/c (45000*24) 1080000 Paid in capital in excess of par value (45000*6) 270000 (To record issuance of common stock) Jan 29 Organization fees a/c 744000 Common stock a/c (25000*24) 600000 Paid in capital in excess of par value-common stock 144000 (To record exchange common stock) jan 19 Land a/c 216000 Building a/c 528000 Machinery 720000 Common stock a/c (50000*24) 1200000 Paid in capital in excess of par value-common stock 264000

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