Question

During its first year of operations, Criswell Inc. completed the following transactions relating to shareholders' equity.

January		5:		Issued 350,000 of its common shares for $8 per share and 3,500 preferred shares at $110.
February		12:		Issued 55,000 shares of common stock in exchange for equipment with a known cash price of $320,000.

The articles of incorporation authorize 5,000,000 shares with a par of $1 per share of common and 1,000,000 preferred shares with a par of $100 per share.

Required:
Record the above transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the issue of 350,000 common shares for $8 per share.

2. Record the issue of 3,500 preferred shares at $110.

3. Issued 55,000 shares of common stock in exchange for equipment with a known cash price of $320,000.

Answer 1