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Issuing Shares of ownership of a corporation.Stock

Cashman Nursery, with an authorization of 19,000 shares of A class of stock with preferential rights over common stock.preferred stock and 390,000 shares of The stock outstanding when a corporation has issued only one class of stock.common stock, completed several transactions involving its stock on June 1, the first day of operations. The trial balance at the close of the day follows:

Cash 444,600

Land 114,000

Buildings 232,500

Preferred 2% Stock, $100 par 330,000

Paid-In Capital in Excess of Par-Preferred Stock 16,500

Common Stock, $40 par 312,000

Paid-In Capital in Excess of Par-Common Stock 132,600

791,100 791,100

All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings.

Journalize the entries to record the (1) common and (2) preferred stock transactions summarized in the trial balance.

For a compound transaction, if an amount box does not require an entry, leave it blank.

(1)

Cash

Common Stock

Paid-In Capital in Excess of Par-Common Stock

Paid-In Capital in Excess of Par-Preferred Stock

Preferred Stock

Cash

Common Stock

Paid-In Capital in Excess of Par-Preferred Stock

Preferred Stock

Retained Earnings

Cash

Paid-In Capital in Excess of Par-Common Stock

Paid-In Capital in Excess of Par-Preferred Stock

Preferred Stock

Retained Earnings

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For a compound transaction, if an amount box does not require an entry, leave it blank.

(2)

Buildings

Cash

Common Stock

Paid-In Capital in Excess of Par-Common Stock

Preferred Stock

Cash

Common Stock

Land

Paid-In Capital in Excess of Par-Common Stock

Preferred Stock

Buildings

Cash

Paid-In Capital in Excess of Par-Common Stock

Preferred Stock

Retained Earnings

Cash

Common Stock

Land

Paid-In Capital in Excess of Par-Common Stock

Paid-In Capital in Excess of Par-Preferred Stock

Solution
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Accounting 3 Weeks Ago 75 Views
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