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Issuing stock Willow Creek Nursery, with an authorization of 75,000 shares of preferred stock and 200,000 shares of common stock, completed several transactions involving its stock on October 1, the first day of operations. The trial balance at the close of the day follows: Cash..................................................... 3,780.000 Land..................................................... 840,000 Buildings................................................. 2,380,000 Preferred 1% Stock, $80 par............................... 2,800,000 Paid In Capital in Excess of Par—Preferred Stock........... 420,000 Common Stock. $30 par.................................. 3,600,000 Paid In Capital in Excess of Par—Common Stock........... 180,000 7,000,000 7,000,000 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 two entries to record the transactions summarized in the trial balance.

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 13, Problem 13.7EX
Textbook Problem

Issuing stock

Willow Creek Nursery, with an authorization of 75,000 shares of preferred stock and 200,000 shares of common stock, completed several transactions involving its stock on October 1, the first day of operations. The trial balance at the close of the day follows:

Cash..................................................... 3,780.000  
Land..................................................... 840,000  
Buildings................................................. 2,380,000  
Preferred 1% Stock, $80 par...............................   2,800,000
Paid In Capital in Excess of Par—Preferred Stock...........   420,000
Common Stock. $30 par..................................   3,600,000
Paid In Capital in Excess of Par—Common Stock...........   180,000
  7,000,000 7,000,000

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 two entries to record the transactions summarized in the trial balance.

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Chapter 13 Solutions

Accounting
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