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Madison Inc. was incorporated in the State of Delaware in May 2018 and received authorization to issue 200,000 shares of $3 Par Value Common Stock and 20,000 Preferred Stock, Par Value $50 per share. Prepare journal entries to record the following transactions.

(a) On June 15, 2018 Madison Inc. issued 75,000 common shares with a Market price of $10
(b) On July 8, 2018 Madison Inc. issued 500 common shares to Mr. Maddox in settlement of Professional Services provided at a fee of $7,800
c On July 18, 2018 Mr. Herve agreed to exchange a Building he owns with a fair value of $700,000 for 39,500 shares. Madison Inc. shares are actively traded at $15 per share on the stock exchange.
(d) On July 1, 2018 Madison Inc. issued 50,000 shares for cash at a Market price of $19 per share
(e) On November 10 Mr. Warren, a prominent investor agreed to exchange a piece of land assessed and valued by the City of Maryland at $800,000 for 12,000 of the preferred stock. The market price of the preferred stock is not known. (f) On December 1, 2018, the remaining 8,000 preferred stock were sold cash at $100 per share.   (g) On Dec. 15, 2018 the remaining 35,000 common stock were sold for cash at a market price of $25 per share

Answer 1

	Ref	Date	Account Title and explanation	Debit	Credit
	a	June.15,2018	Cash	$750,000		(75000*10)
			Common stock, $3 par		$225,000	(75000*3)
			Paid in capital in excess of par value-common stock		$525,000	(750000-225000)
			(To record issuance of 75000 shares of stock for cash)
	b	.July8, 2018	Accounts Payable	$7,800
			Common stock, $3 par		$1,500	(500*3)
			Paid in capital in excess of par value-common stock		$6,300	(7800-1500)
			(To record issuance of 500 shares of stock against payment for professionalfees)
	c	.July18,2018	Building Asset	$700,000
			Mr Herve		$700,000
			(To record purchase of building)
		.July18,2018	Mr Harvey	$700,000
			Common stock, $3 par		$118,500	(39500*3)
			Paid in capital in excess of par value-common stock		$581,500	(700000-118500)
			(To record issuance of 39500 shares of stock )
	d	.July1,2018	Cash	$950,000		(19*50000)
			Common stock, $3 par		$150,000	(3*50000)
			Paid in capital in excess of par value-common stock		$800,000	(950000-150000)
			(To record issuance of 50000 shares of stock for cash)
	e.	.November 10	Land	$800,000
			Mr.Warren		$800,000
			(To record purchase of Land)
		.November 10	Mr Warren	$800,000
			Preferred stock, $50 par		$600,000	(12000*50)
			Paid in capital in excess of par value-preferred stock		$200,000	(800000-600000)
			(To record issuance of 12000 preferred shares)
	f.	.November 10	Cash	$800,000		(8000*100)
			Preferredstock, $50 par		$400,000	(8000*50)
			Paid in capital in excess of par value-Preferred stock		$400,000	(800000-400000)
			(To record issuance of 8000 preferred shares)
	g	.Dec. 15, 2018	Cash	$875,000		(35000*25)
			Common stock, $3 par		$105,000	(35000*3)
			Paid in capital in excess of par value-common stock		$770,000	(875000-105000)
			(To record issuance of 35000 shares of stock for cash)