The Delta Sunrise Corporation is incorporated under the laws of Mississippi. The certificate of incorporation shows that the company is authorized to issue 75,000 shares of 10%, $40 par preferred stock and 125,000 shares of $10 par common stock. Following is a narrative of selected transactions completed during the first month after incorporation. Prepare the appropriate journal entries.
Aug. 1
At the first meeting of the incorporators, subscriptions for 30,000 shares of common stock at $12 per share were accepteD.4
Received a payment of $150,000 on the common stock subscription.
12
Issued 6,000 shares of preferred stock in exchange for $100,000 cash and land with a fair market value of $160,000.
26
Received the balance in full for the common stock subscription and issued the stock certificates.

Question

The Delta Sunrise Corporation is incorporated under the laws of Mississippi. The certificate of incorporation shows that the company is authorized to issue 75,000 shares of 10%, $40 par preferred stock and 125,000 shares of $10 par common stock. Following is a narrative of selected transactions completed during the first month after incorporation. Prepare the appropriate journal entries.
Aug. 1
At the first meeting of the incorporators, subscriptions for 30,000 shares of common stock at $12 per share were accepteD.4
Received a payment of $150,000 on the common stock subscription.
12
Issued 6,000 shares of preferred stock in exchange for $100,000 cash and land with a fair market value of $160,000.
26
Received the balance in full for the common stock subscription and issued the stock certificates.
​

Quizplus · Accepted Answer

The Answer of The Delta Sunrise Corporation is incorporated under the laws of Mississippi. The certificate of incorporation shows that the company is authorized to issue 75,000 shares of 10%, $40 par preferred stock and 125,000 shares of $10 par common stock. Following is a narrative of selected transactions completed during the first month after incorporation. Prepare the appropriate journal entries.
Aug. 1
At the first meeting of the incorporators, subscriptions for 30,000 shares of common stock at $12 per share were accepteD.4
Received a payment of $150,000 on the common stock subscription.
12
Issued 6,000 shares of preferred stock in exchange for $100,000 cash and land with a fair market value of $160,000.
26
Received the balance in full for the common stock subscription and issued the stock certificates.
​

The Delta Sunrise Corporation Is Incorporated Under the Laws of Mississippi