HAPTER I4 14-179. Brandt Corporation is authorized to issue 100,000 shares of $5

Question

HAPTER I4 14-179. Brandt Corporation is authorized to issue 100,000 shares of $5 stated value common stocl and 2,000 shares of $100 par value, 8 percent preferred stock. Prepare entries in journal form without explanations to record the following transactions Apr.15 Issued 1,000 shares of common stock to an attorney for a bill of $9,000 in connection with the organization of the corporation. Issued 1,000 shares of preferred stock for cash of $115 per share. 27 Issued 8,000 shares of common stock in exchange for land for a plant site valued at $50,000 May 1 Issued 15,000 shares of common stock for $90, 000 in cash. General Journal Page 1 Post. Ref. Date Description Debit Credit

Explanation / Answer

Date Account Debit Credit Info Apr.15 Organisation expense                  9,000 Total bill received= 9000 Common stock                  5,000 Face value of stock issued= 1000*5 Additional paid in capital- common stock                  4,000 Excess received over face value Apr.25 Cash              115,000 Total cash received= 1000*115 Preferred stock              100,000 Face value of stock issued= 1000*100 Additional paid in capital- preferred stock                15,000 Excess received over face value Apr.27 Land                50,000 Land value= 50000 Common stock                40,000 Face value of stock issued= 8000*5 Additional paid in capital- common stock                10,000 Excess land value over face value Apr.27 Cash                90,000 cash received= 90000 Common stock                75,000 Face value of stock issued= 15000*5 Additional paid in capital- common stock                15,000 Excess received over face value

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