In: Accounting
Metlock Corporation was organized on January 1, 2017. It is
authorized to issue 10,400 shares of 8%, $100 par value preferred
stock, and 534,200 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 80,700 shares of common stock for cash at $7 per share. | |
Mar. 1 | Issued 5,960 shares of preferred stock for cash at $112 per share. | |
Apr. 1 | Issued 24,550 shares of common stock for land. The asking price of the land was $91,460; the fair value of the land was $80,700. | |
May 1 | Issued 80,700 shares of common stock for cash at $9 per share. | |
Aug. 1 | Issued 10,400 shares of common stock to attorneys in payment of their bill of $53,000 for services rendered in helping the company organize. | |
Sept. 1 | Issued 10,400 shares of common stock for cash at $11 per share. | |
Nov. 1 |
Issued 990 shares of preferred stock for cash at $114 per share. |
Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
JOURNAL ENTRY
DATE ACCOUNT TITLES DEBIT ($) CREDIT($)
JAN.10 Cash A/c (80700*$7) 564,900
To Common Stock A/c (80700*$1) 80,700
To Paid-in- Capital in excess A/c 484,200
March.1 Cash A/c (5960*$112) 667,520
To Preference Stock A/c(5960*$100) 596,000
To Paid-in- Capital in excess A/c 71,520
APRIL.1 Land A/c (at fair value) 80,700
To Common Stock A/c (24550*$1) 24,550
To Paid-in- Capital in excess A/c 56,150
MAY.1 Cash A/c (80700*$9) 726,300
To Common Stock A/c (80700*$1) 80,700
To Paid-in- Capital in excess A/c 645,600
AUGUST.1 Organisation Expense A/c 53,000
To Common Stock A/c (10400*$1) 10,400
To Paid-in- Capital in excess A/c 42,600
SEPT.1 Cash A/c (10400*$11) 114,400
To Common Stock A/c (10400*$1) 10,400
To Paid-in- Capital in excess A/c 104,000
NOV.1 Cash A/c (990*$114) 112,860
To Preference Stock A/c(990*$100) 99,000
To Paid-in- Capital in excess A/c 13,860