A corporation received its charter and began business this year.The company is authorized to issue 500,000 shares of $100 par,6%,noncumulative,nonparticipating preferred stock,and 1,000,000 shares of no-par common stock.The following selected transactions occurred during this year:
$$\begin{array} { | l | l | }
\hline \text { Mar. } & \
5 & \text { Issued } 250 \text { shares of preferred stock for } \$ 102 \text { cash per share. } \
\hline & \text { Exchanged } 750 \text { shares of common stock for } \$ 12,000 \text { in legal } \
{ \text { July } 15 } & \text { services incurred in the organization of the company. } \
\hline
\end{array}$$
Prepare journal entries to record these transactions.

Question

A corporation received its charter and began business this year.The company is authorized to issue 500,000 shares of $100 par,6%,noncumulative,nonparticipating preferred stock,and 1,000,000 shares of no-par common stock.The following selected transactions occurred during this year:
 $$\begin{array} { | l | l | } 
\hline \text { Mar. } & \
5 & \text { Issued } 250 \text { shares of preferred stock for } \$ 102 \text { cash per share. } \
\hline  & \text { Exchanged } 750 \text { shares of common stock for } \$ 12,000 \text { in legal } \
{ \text { July } 15 }  & \text { services incurred in the organization of the company. } \
\hline
\end{array}$$ 
Prepare journal entries to record these transactions.

Quizplus · Accepted Answer

The Answer of A corporation received its charter and began business this year.The company is authorized to issue 500,000 shares of $100 par,6%,noncumulative,nonparticipating preferred stock,and 1,000,000 shares of no-par common stock.The following selected transactions occurred during this year:
 $$\begin{array} { | l | l | } 
\hline \text { Mar. } & \
5 & \text { Issued } 250 \text { shares of preferred stock for } \$ 102 \text { cash per share. } \
\hline  & \text { Exchanged } 750 \text { shares of common stock for } \$ 12,000 \text { in legal } \
{ \text { July } 15 }  & \text { services incurred in the organization of the company. } \
\hline
\end{array}$$ 
Prepare journal entries to record these transactions.

A Corporation Received Its Charter and Began Business This Year