EX 12-8 Issuing stock Obj. 2 Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 50,000 shares of preferred 2% stock, $40 par and 1,000,000 shares of $8 par common stock. The following selected transactions were completed during the first year of operations: Feb. 5. Issued 600,000 shares of common stock at par for cash. 5. Issued 1,500 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. Apr. 9. Issued 45,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $100,000, $310,000, and $85,000 respectively. June 14. Issued 30,000 shares of preferred stock at $53 for cash. Journalize the transactions.
EX 12-8 Issuing stock Obj. 2 Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 50,000 shares of preferred 2% stock, $40 par and 1,000,000 shares of $8 par common stock. The following selected transactions were completed during the first year of operations: Feb. 5. Issued 600,000 shares of common stock at par for cash. 5. Issued 1,500 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. Apr. 9. Issued 45,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $100,000, $310,000, and $85,000 respectively. June 14. Issued 30,000 shares of preferred stock at $53 for cash. Journalize the transactions.
Related questions
Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year:
| Preferred 2% Stock, $80 par (100,000 shares authorized, 60,000 shares issued) | $4,800,000 |
| Paid-In Capital in Excess of ParâPreferred Stock | 210,000 |
| Common Stock, $9 par (3,000,000 shares authorized, 1,750,000 shares issued) | 15,750,000 |
| Paid-In Capital in Excess of ParâCommon Stock | 1,400,000 |
| Retained Earnings | 52,840,000 |
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
a. Purchased 87,500 shares of treasury common for $8 per share.
b. Sold 55,000 shares of treasury common for $11 per share.
c. Issued 20,000 shares of preferred 2% stock at $84.
d. Issued 400,000 shares of common stock at $13, receiving cash.
e. Sold 18,000 shares of treasury common for $7.50 per share.
f. Declared cash dividends of $1.60 per share on preferred stock and $0.05 per share on common stock.
g. Paid the cash dividends.
Required:
Journalize the entries to record the transactions.
For a compound transaction, if an amount box does not require an entry, leave it blank.
