The Vogel and Wallis Corporation is authorized to issue 15,000 shares of 10%, $50 par value preferred stock and 60,000 shares of $5 par value common stock. Following is a narrative of selected transactions completed during the first month after incorporation.June 1The incorporators accepted subscriptions for 5,000 shares of preferred stock at $55 per share.8The incorporators accepted subscriptions for 16,000 shares of common stock at $6 per share.12Subscribers of the preferred stock paid $75,000 cash and land valued at $200,000 in full settlement of the subscriptions.12Subscribers of the common stock paid $21,000 cash, a $45,000 building, and equipment worth $30,000 in full settlement of the subscriptions.Required:Prepare the journal entries necessary for the transactions. If an amount box does not require an entry, leave it blank.

The journal entries are prepared to keep the record of day to day transactions of the business.

Answered: The Vogel and Wallis Corporation is…

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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The Vogel and Wallis Corporation is authorized to issue 15,000 shares of 10%, $50 par value preferred stock and 60,000 shares of $5 par value common stock. Following is a narrative of selected transactions completed during the first month after incorporation.

June 1	The incorporators accepted subscriptions for 5,000 shares of preferred stock at $55 per share.
8	The incorporators accepted subscriptions for 16,000 shares of common stock at $6 per share.
12	Subscribers of the preferred stock paid $75,000 cash and land valued at $200,000 in full settlement of the subscriptions.
12	Subscribers of the common stock paid $21,000 cash, a $45,000 building, and equipment worth $30,000 in full settlement of the subscriptions.

Required:

Prepare the journal entries necessary for the transactions. If an amount box does not require an entry, leave it blank.

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