Question

Grouper Corporation was organized on January 1, 2020. It is authorized to issue 9,900 shares of 8%, $100 par value preferred stock, and 533,900 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 5,600 shares of preferred stock for cash at $111 per share.
Apr. 1		Issued 24,810 shares of common stock for land. The asking price of the land was $92,000; the fair value of the land was $80,970.
May 1		Issued 80,970 shares of common stock for cash at $8 per share.
Aug. 1		Issued 9,900 shares of common stock to attorneys in payment of their bill of $47,000 for services rendered in helping the company organize.
Sept. 1		Issued 9,900 shares of common stock for cash at $10 per share.
Nov. 1		Issued 1,010 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.)

Answer 1

Journal Entry- Grouper Corporation
Date	Accounts Title and Explanations	Debit	Credit
10-Jan	Cash (80970Share *$6)	$485,820.00
	Common stock (80970*1)		$80,970.00
	Paid in capital in excess of stated value -common stock		$404,850.00
	Record Issuance of Common stock
1-Mar	Cash (5600 shares*111)	$621,600.00
	Preferred stock (5600 shares*$100)		$560,000.00
	Paid in capital in excess of par - Preferred stock		$61,600.00
	Record Issuance of Preferred stock
1-Apr	Land (at fair value)	$80,970.00
	Common stock (24810 shares*$1)		$24,810.00
	Paid in capital in excess of stated value -common stock (BF)		$56,160.00
	Record Issuance of Common stock in lieu of land
1-May	Cash (80970 Share *$8)	$647,760.00
	Common stock (80970*$1)		$80,970.00
	Paid in capital in excess of stated value -common stock		$566,790.00
	Record Issuance of Common stock
1-Aug	Organizational expenses	$47,000.00
	Common stock (9900 shares*$1)		$9,900.00
	Paid in capital in excess of stated value -common stock		$37,100.00
	Record Issuance of Common stock in lieu of service
1-Sep	Cash (900 shares*$10)	$99,000.00
	Common stock (9900 shares*$1)		$9,900.00
	Paid in capital in excess of stated value -common stock		$89,100.00
	Record Issuance of Common stock
1-Nov	Cash (1010 shares*$123)	$124,230.00
	Preferred stock (1010 shares*$100)		$101,000.00
	Paid in capital in excess of par - Preferred stock		$23,230.00
	Record Issuance of Preferred stock