Question

Windsor, Inc. had the following transactions during the current period.
Mar. 2 Issued 5,600 shares of $5 par value common stock to attorneys in payment of a bill for $33,600 for services performed in helping the company to incorporate.
June 12 Issued 61,500 shares of $5 par value common stock for cash of $384,375.
July 11 Issued 1,500 shares of $100 par value preferred stock for cash at $107 per share.
Nov. 28 Purchased 1,800 shares of treasury stock for $72,000.
Journalize the transactions. (Record journal entries in the order presented in the problem. 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 O for the amounts.)

Answer 1

Answer:

See the journal entries below.

Explanation:

The journal entries will look as follows:

Date      Details                                                        Debit ($)          Credit ($)

Mar. 2   Attorney bill                                                 33,600

              Common stock (5,600 * $5)                                                28,000

              APIC - Common stock (33,600 - 28,000)                             5,600

            (To record the issue of 5,600 shares of common share to pay Attorney Bill.)

June 12  Cash                                                        384,375

                Common stock (61,500 * $5)                                         307,500

                APIC - Common stock (384,375- 307,500)                     76,875

              (To record the issue of 61,500 shares of common stock for cash.)  

July 11    Cash (1,500 * $107)                                   160,500

                Preferred stock (1,500 * $100)                                       150,000

                APIC - Preferred stock (160,500 – 150,000)                  76,875

             (To record the issue of 1,500 shares of preferred stock for cash.)  

Nov 28  Treasury stock                                            72,000

                Cash                                                                                 72,000

              (To record the purchase of 1,800 shares of treasury stock.)            

Note: APIC = Additional-paid-in-capital