Question

. Excalibur Corporation is authorized to issue 3,000,000 shares of $5 par value common stock. During 2019, its first year of operation, the company has the following stock transactions.

Jan.   15    Issued 600,000 shares of stock at $13 per share.

July     2    Issued 100,000 shares of stock in exchange for a building. The building had an asking price of $1,000,000. The stock is currently selling at $9 per share.

Sept.   5    Purchased 5,000 shares of common stock for the treasury at $10 per share.

Dec.    6    Sold 2,000 shares of the treasury stock at $14 per share.

Dec. 12     Sold the remaining shares of treasury stock at $8 per share.

Journalize the transactions for Excalibur. Omit explanations.

Date	Description	Debit	Credit

Answer 1

Date	Description	Debit	Credit
Jan 15	Cash	78,00,000
	Common Stock		30,00,000
	Paid in capital in excess of par value, common stock		48,00,000
	(Issued 600,000 shares of $5 par value common stock at $13 per share)
July 2	Building	10,00,000
	Common Stock		5,00,000
	Paid in capital in excess of par value, common stock		4,00,000
	Profit on acquisition of building		1,00,000
	(Issued 100,000 shares in exchange of building when market value is $9 per share)
Sept 5	Treasury Stock	50,000
	Cash		50,000
	(Purchased 5,000 shares of common stock for the treasury at $10 per share)
Dec 6	Cash	28,000
	Additional Paid-In Capital		8,000
	Treasury Stock		20,000
	(Sold 2,000 shares of treasury stock at $14 per share)
Dec 12	Cash	24,000
	Additional Paid-In Capital	6,000
	Treasury Stock		30,000
	(Sold 3,000 shares of treasury stock at $8 per share)