Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Chapter 13, Problem 13.7EX
Issuing stock
Willow Creek Nursery, with an authorization of 75,000 shares of
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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