Kathleen Battle Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 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.10Issued 80,000 shares of common stock for cash at $5 per share.Mar.01Issued 5,000 shares of preferred stock for cash at $108 per share.Apr.01Issued 24,000 shares of common stock for land. The asking price of the land was $90,000; the fair value of the land was $80,000.May01Issued 80,000 shares of common stock for cash at $7 per share.Aug.01Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize.Sept.01Issued 10,000 shares of common stock for cash at $9 per share.Nov.01Issued 1,000 shares of preferred stock for cash at $112 per share.InstructionsPrepare the journal entries to record the above transactions.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Answered: Kathleen Battle Corporation was…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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Kathleen Battle Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 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 80,000 shares of common stock for cash at $5 per share.
Mar.	01	Issued 5,000 shares of preferred stock for cash at $108 per share.
Apr.	01	Issued 24,000 shares of common stock for land. The asking price of the land was $90,000; the fair value of the land was $80,000.
May	01	Issued 80,000 shares of common stock for cash at $7 per share.
Aug.	01	Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize.
Sept.	01	Issued 10,000 shares of common stock for cash at $9 per share.
Nov.	01	Issued 1,000 shares of preferred stock for cash at $112 per share.

Instructions

Prepare the journal entries to record the above transactions.

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