Question

Work Place Products Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 25,000 shares of preferred 2% stock, $100 par and 550,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations:

July	1	Issued 243,000 shares of common stock at par for cash.
	1	Issued 600 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
Aug.	7.	Issued 68,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $147,400, $518,700 and $163,500 respectively.
Sept.	20.	Issued 16,000 shares of preferred stock at $112 for cash.

Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.

Journal

Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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Answer 1

Answer
	Journal Entries
Date	Accounting titles & Explanations	Debit	Credit
01-Jul	Cash	$2,430,000		243000*10
	Common stock		$2,430,000
	( To record issunace of Common stock for cash )
01-Jul	organization expense/legal expense	$       6,000		600*10
	Common stock		$       6,000
	( To record issunace of Common stock for payment of legal fees   )
07-Aug	land	$   147,400
	Building	$   518,700
	Equipment	$   163,500
	Common stock		$   680,000	68000*10
	paid in capital in excess of par		$   149,600
	( To record issunace of Common stock )
20-Sep	Cash	$1,792,000		16000*112
	preferred stock		$1,600,000	16000*100
	paid in capital in excess of par-PS		$   192,000	16000*12
	( To record issunace of preferred stock )