Question

Shamrock Corporation was organized on January 1, 2020. It is authorized to issue 9,800 shares of 8%, $100 par value preferred stock, and 549,100 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 80,410 shares of common stock for cash at $7 per share.
Mar. 1 Issued 5,360 shares of preferred stock for cash at $113 per share.
Apr. 1 Issued 24,880 shares of common stock for land. The asking price of the land was $91,780; the fair value of the land was $80,410.
May 1 Issued 80,410 shares of common stock for cash at $8 per share.
Aug. 1 Issued 9,800 shares of common stock to attorneys in payment of their bill of $46,000 for services rendered in helping the company organize.
Sept. 1 Issued 9,800 shares of common stock for cash at $10 per share.
Nov. 1 Issued 940 shares of preferred stock for cash at $109 per share.

Required:
Journalize the transactions.

Answer 1

Answer:

Cash  562870

Common Stock  80410

Additional Paid-in  482460

Cash  605680

Preferred Stock  536000

Additonal PS  69680

Land               80,410

Common Stock  24880

Additional Paid-in  55,530

Cash  643280

Common Stock  80410

Additional Paid-in  562870

Legal expense 46,000

Common Stock  9800

Additional Paid-in       36,200

Explanation:

jan 10th

cash proceed: 80410 x 7 = 562.870

additional 80410 ( 7 - 1 ) = 482,460

Jan 11th

cash proceed 5,360 x 113 = 605,680

addtional (113 - 100) x 5,360 = 69,680

April 1st

Land fair value  80,410

Common Stock  24880

Additional Paid-in difference among them.

May 1st

additonal paid in (8 - 1) x 80,410 = 562870

August 1st

legal fees 46,000 - 9,800 common stock = 36,200 additional paid in