Question

Waterway Corporation was organized on January 1, 2020. It is authorized to issue 9,800 shares of 8%, $100 par value preferred stock, and 525,300 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 80,970 shares of common stock for cash at $6 per share.
Mar. 1		Issued 5,750 shares of preferred stock for cash at $111 per share.
Apr. 1		Issued 24,670 shares of common stock for land. The asking price of the land was $91,270; the fair value of the land was $80,970.
May 1		Issued 80,970 shares of common stock for cash at $9 per share.
Aug. 1		Issued 9,800 shares of common stock to attorneys in payment of their bill of $47,400 for services rendered in helping the company organize.
Sept. 1		Issued 9,800 shares of common stock for cash at $11 per share.
Nov. 1		Issued 980 shares of preferred stock for cash at $123 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.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date                                                          Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

Answer 1

Jan 10 Cash A/c Dr (80970*6) 485820

To Common stock(80970*1) 80970

To Securities premium(80970*5) 404850

(Being 80970 common shares of $1 each issued at a premium of $5)

Mar 1 Cash A/c Dr (5750*111) 638250

To Preference Stock(5750*100) 575000

To Securities Premium(5750*11) 63250

(Being 5750 preference shares of $ 100 each issued at a premium of $11)

Apr 1 Land A/c Dr 80970

To Common stock (24670*1) 24670

To Securities premium (80970-24670) 56300

(Being 24670 common shares issued at premium for purchase of land)

Note: Fair market value will be used to record the land and not the ask price.

May 1 Cash Dr (80970*9) 728730

To Common stock (80970*1) 80970

To Securites premium (80970*8) 647760

(Being common shares of $1 each issued at a premium of $ 8 per share)

Aug 1 Legal charges Dr 47400

To Common Stock (9800*1) 9800

To Securities premium (47400-9800) 37600

(Being common shares issued at a premium against legal charges payable)

Sep 1 Cash Dr (9800*11) 107800

To Common stock (9800*1) 9800

To Securities premium (9800*10) 98000

(Being 9800 shares at $1 each issued at a premium of $ 10 per share)

Nov 1 Cash Dr (980*123) 120540

To Preference stock (980*100) 98000

To Securities premium (980*23) 22540

(Being 980 preference stock of $ 100 each issued at a premium of $ 23 per share)