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Sagot :
Answer:Please find answers below
Explanation:
Being the issue of 700,000 shares of common stock at par for cash
Date Accounts and explanation Debit Credit
5th Feb Cash (700,000 shares × $25) $17,500,000
To Common Stock $17,500,000
Being the issue of 1200 shares of common stock at par for legal fees
Date Accounts and explanation Debit Credit
5th Feb Legal Fees (1200 shares × $25) $30,000
To Common Stock $30,000
Being the issue of the common stock in exchange of assets
Date Accounts and explanation Debit Credit
9th Apr Land $120,000
Building $280,000
Equipment $80,000
To Common Stock (40,000 shares × $25) $1,000,000
To Paid in capital excess of par value
(error noticed as the debit and credit balance do not tall after computation the amount of land, building and equipment $120,000, $280,000, and $80.000,with respect to the common stock of 40,000 shares × $25)
Being the issuance of the preferred stock.
Date Accounts and explanation Debit Credit
14th Jun Cash (25,000 shares × $82) $2,050,000
To preferred Stock (25,000 shares × $50) $1,250,000
To Paid in capital excess of par value $800,000
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