Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 50,000 shares of preferred 3% stock, $55 par and 300,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions. If an amount box does not require an entry, leave it blank. Feb. 5.  Issued 110,000 shares of common stock at par for cash. Feb. 5. Cash  fill in the blank 3ce08302705100a_2 fill in the blank 3ce08302705100a_3   Common Stock  fill in the blank 3ce08302705100a_5 fill in the blank 3ce08302705100a_6   Feedback   What is the company receiving and at what price is the stock being issued? Feb. 5.  Issued 350 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. Feb. 5. Organizational Expenses  fill in the blank ac4e2f09107d03f_2 fill in the blank ac4e2f09107d03f_3   Common Stock  fill in the blank ac4e2f09107d03f_5 fill in the blank ac4e2f09107d03f_6   Feedback   Recall that stock may be issued for reasons other than to receive cash. What are these shares paying for? Apr. 9.  Issued 15,500 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $28,000, $154,000, and $35,000, respectively. Apr. 9. Land  fill in the blank c82b6dfbe076030_2 fill in the blank c82b6dfbe076030_3   Buildings  fill in the blank c82b6dfbe076030_5 fill in the blank c82b6dfbe076030_6   Equipment  fill in the blank c82b6dfbe076030_8 fill in the blank c82b6dfbe076030_9   Common Stock  fill in the blank c82b6dfbe076030_11 fill in the blank c82b6dfbe076030_12   Paid-In Capital in Excess of Par-Common Stock  fill in the blank c82b6dfbe076030_14 fill in the blank c82b6dfbe076030_15   Feedback   Record the assets, and increase the common stock account by the par value of the shares. Record any amount above par in a separate paid-in capital equity account. Recall that shares of stock can be issued to acquire assets. At what value must the preferred stock and common stock accounts be recorded? June 14.  Issued 15,000 shares of preferred stock at $67 for cash. June 14. Cash  fill in the blank a6c2f3fc0fb6fea_2 fill in the blank a6c2f3fc0fb6fea_3   Preferred Stock  fill in the blank a6c2f3fc0fb6fea_5 fill in the blank a6c2f3fc0fb6fea_6   Paid-In Capital in Excess of Par-Preferred Stock  fill in the blank a6c2f3fc0fb6fea_8 fill in the blank a6c2f3fc0fb6fea_9

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 3CE: Prepare general journal entries for the following transactions of GOTE Company: (a) Received...
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Issuing Stock

Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 50,000 shares of preferred 3% stock, $55 par and 300,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations:

Journalize the transactions.

If an amount box does not require an entry, leave it blank.

Feb. 5.  Issued 110,000 shares of common stock at par for cash.

Feb. 5. Cash  fill in the blank 3ce08302705100a_2 fill in the blank 3ce08302705100a_3
  Common Stock  fill in the blank 3ce08302705100a_5 fill in the blank 3ce08302705100a_6
 
Feedback
 

What is the company receiving and at what price is the stock being issued?

Feb. 5.  Issued 350 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.

Feb. 5. Organizational Expenses  fill in the blank ac4e2f09107d03f_2 fill in the blank ac4e2f09107d03f_3
  Common Stock  fill in the blank ac4e2f09107d03f_5 fill in the blank ac4e2f09107d03f_6
 
Feedback
 

Recall that stock may be issued for reasons other than to receive cash. What are these shares paying for?

Apr. 9.  Issued 15,500 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $28,000, $154,000, and $35,000, respectively.

Apr. 9. Land  fill in the blank c82b6dfbe076030_2 fill in the blank c82b6dfbe076030_3
  Buildings  fill in the blank c82b6dfbe076030_5 fill in the blank c82b6dfbe076030_6
  Equipment  fill in the blank c82b6dfbe076030_8 fill in the blank c82b6dfbe076030_9
  Common Stock  fill in the blank c82b6dfbe076030_11 fill in the blank c82b6dfbe076030_12
  Paid-In Capital in Excess of Par-Common Stock  fill in the blank c82b6dfbe076030_14 fill in the blank c82b6dfbe076030_15
 
Feedback
 

Record the assets, and increase the common stock account by the par value of the shares. Record any amount above par in a separate paid-in capital equity account.

Recall that shares of stock can be issued to acquire assets. At what value must the preferred stock and common stock accounts be recorded?

June 14.  Issued 15,000 shares of preferred stock at $67 for cash.

June 14. Cash  fill in the blank a6c2f3fc0fb6fea_2 fill in the blank a6c2f3fc0fb6fea_3
  Preferred Stock  fill in the blank a6c2f3fc0fb6fea_5 fill in the blank a6c2f3fc0fb6fea_6
  Paid-In Capital in Excess of Par-Preferred Stock  fill in the blank a6c2f3fc0fb6fea_8 fill in the blank a6c2f3fc0fb6fea_9
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