(Recording the Issuance of Common and Preferred Stock) Kathleen Battle Corporation was organized on January 1, 2017. It is authorized to issue 10,000 shares of 8%, \(100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of \)1 per share. The following stock transactions were completed during the first year.

Jan. 10 Issued 80,000 shares of common stock for cash at \(5 per share.

Mar. 1 Issued 5,000 shares of preferred stock for cash at \)108 per share.

Apr. 1 Issued 24,000 shares of common stock for land. The asking price of

the land was \(90,000; the fair value of the land was \)80,000.

May 1 Issued 80,000 shares of common stock for cash at \(7 per share.

Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of

their bill of \)50,000 for services rendered in helping the company

organize.

Sept. 1 Issued 10,000 shares of common stock for cash at \(9 per share.

Nov. 1 Issued 1,000 shares of preferred stock for cash at \)112 per share.

Instructions

Prepare the journal entries to record the above transactions.

Date

Particular

Debit $

Credit $

January 10

Cash A/c.

400,000

Common stock

80,000

Paid-in Capital in excess of stated

Value-Common stock A/c.

320,000

To record the issue of share.

March 1

Cash A/c.

540,000

Preferred Stock

500,000

Paid-in Capital in excess of par

Preferred Stock A/c.

40,000

To record the issue of share.

April 1

Land A/c.

80,000

Common stock

24,000

Paid-in Capital in excess of stated

Value-Common stock A/c.

56,000

To record the issue of share.

May 1

Cash A/c.

560,000

Common stock

80,000

Paid-in Capital in Excess of stated

Value -Common stock A/c.

480,000

To record the issue of share.

August 1

Organization Expense A/c.

50,000

Common stock A/c.

10,000

Paid-in capital in excess of

Stated value- common stock A/c.

40,000

To record the issue of share.

September 1

Cash A/c.

90,000

Common Stock A/c.

10,000

Paid-in Capital in excess of

Stated value-common stock A/c.

80,000

To record the issue of share.

November 1

Cash A/c.

112,000

Preferred Stock A/c.

100,000

Paid-in Capital in Excess of

Par- Preferred stock A/c.

12,000

To record the issue of share.