Question

Marigold Corp. was organized on January 1, 2017. It is authorized to issue 22,500 shares of 7%, $51 par value preferred stock and 457,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 68,500 shares of common stock for cash at $5 per share. Mar. 1 Issued 1,170 shares of preferred stock for cash at $54 per share. May 1 Issued 113,500 shares of common stock for cash at $7 per share. Sept. 1 Issued 4,700 shares of common stock for cash at $8 per share. Nov. 1 Issued 2,700 shares of preferred stock for cash at $55 per share.

(a) Journalize the transactions. (Record journal entries in the order presented in the problem. 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.)

Answer 1

		Dr	Cr
Jan-10	Cash 68500*5	342500
	Common stock 68500*3		205500
	Paid in capital in excess of stated value -common stock		137000
	( to record issue of common stock)
Mar-01	Cash 1170*54	63180
	Preferred stock 1170*3		59670
	Paid in capital in excess of stated value -common stock		3510
	( to record issue of preferred stock)
May-01	Cash 113500*7	794500
	Common stock 113500*5		340500
	Paid in capital in excess of stated value -common stock		454000
	( to record issue of common stock)
Sep-01	Cash 4700*8	37600
	Common stock 4700*5		23500
	Paid in capital in excess of stated value -common stock		14100
	( to record issue of common stock)
Nov-01	Cash 2700*55	148500
	Preferred stock 2700*51		137700
	Paid in capital in excess of stated value -common stock		10800
	( to record issue of preferred stock)