Question

ssuing Stock

Work Place Products Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 100,000 shares of 2% preferred stock, $40 par and 250,000 shares of $25 par common stock. The following selected transactions were completed during the first year of operations:

Journalize the transactions.

July. 1. Issued 130,000 shares of common stock at par for cash.

July. 1	Cash
	Common Stock

July. 1 Issued 600 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.

July. 1

Aug. 7. Issued 16,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $75,000, $409,000, and $92,000, respectively.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Aug. 7

Sept. 20. Issued 13,000 shares of preferred stock at $50 for cash.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Sept. 20

ssuing Stock

Work Place Products Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 100,000 shares of 2% preferred stock, $40 par and 250,000 shares of $25 par common stock. The following selected transactions were completed during the first year of operations:

Journalize the transactions.

July. 1. Issued 130,000 shares of common stock at par for cash.

July. 1	Cash
	Common Stock

July. 1 Issued 600 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.

July. 1

Aug. 7. Issued 16,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $75,000, $409,000, and $92,000, respectively.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Aug. 7

Sept. 20. Issued 13,000 shares of preferred stock at $50 for cash.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Sept. 20

ssuing Stock

Work Place Products Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 100,000 shares of 2% preferred stock, $40 par and 250,000 shares of $25 par common stock. The following selected transactions were completed during the first year of operations:

Journalize the transactions.

July. 1. Issued 130,000 shares of common stock at par for cash.

July. 1	Cash
	Common Stock

July. 1 Issued 600 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.

July. 1

Aug. 7. Issued 16,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $75,000, $409,000, and $92,000, respectively.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Aug. 7

Sept. 20. Issued 13,000 shares of preferred stock at $50 for cash.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Sept. 20

Common stock

Paid-in Capital in excess of par-common stock

Paid-in Capital in excess of par-preffered stock

preferred stock

Retained Earnings

Answer 1

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Work Place Products Inc.
Workings for July 1	Amount $
Common Stock
Number of shares issued	130,000.00
Par Value	25.00
Total Par Value	3,250,000.00
Value of legal services
Number of shares issued	600.00
Par Value	25.00
Value of legal services	15,000.00
Workings for Aug 7
Issue value of Common stock
Land	75,000.00
Building	409,000.00
Equipment	92,000.00
Total Issue value of Common stock	576,000.00
Number of shares issued	16,000.00
Par Value	25.00
Total Par Value	400,000.00
Paid in capital in excess of par- Common Stock	176,000.00
Workings for Sept 20	Amount $
Preferred stock
Number of shares issued	13,000.00
Par Value	40.00
Total Par Value	520,000.00
Issue Price	50.00
Issue Value	650,000.00
Par Value	520,000.00
Paid in capital in excess of par- Preferred stock	130,000.00

Journal Entry
Date	Account	Debit $	Credit $
1-Jul	Cash	3,250,000.00
	Common Stock		3,250,000.00
	(Being common stock issued against cash)
1-Jul	Legal expenses	15,000.00
	Common Stock		15,000.00
	(Being common stock issued against legal expenses)
7-Aug	Land	75,000.00
	Building	409,000.00
	Equipment	92,000.00
	Common stock		400,000.00
	Paid in capital in excess of par- Common stock		176,000.00
	(Being common stock issued against property)
20-Sep	Cash	650,000.00
	Preferred stock		520,000.00
	Paid in capital in excess of par- Preferred stock		130,000.00
	(Being preferred stock issued against cash)