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E15-2 (Recording the Issuance of Common and Preferred Stock)
Kathleen Battle Corporation was orga- nized on January 1,
2014. 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 Mar.1 Apr. 1
May1 Aug.1
Sept. 1 Nov.1
Issued 80,000 shares of common stock for cash at $5 per share.
Issued 5,000 shares of preferred stock for cash at $108 per
share.
Issued24,000sharesofcommonstockforland.Theaskingpriceofthel
andwas$90,000;thefair value of the land was $80,000. Issued
80,000 shares of common stock for cash at $7 per share. 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. Issued 10,000 shares of common stock for cash at $9
per share. Issued 1,000 shares of preferred stock for cash at
$112 per share.
Instructions
Prepare the journal entries to record the above transactions

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E15-2 (Recording the Issuance of Common and Preferred Stock) Kathlee.docx

  • 1. E15-2 (Recording the Issuance of Common and Preferred Stock) Kathleen Battle Corporation was orga- nized on January 1, 2014. 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 Mar.1 Apr. 1 May1 Aug.1 Sept. 1 Nov.1 Issued 80,000 shares of common stock for cash at $5 per share. Issued 5,000 shares of preferred stock for cash at $108 per share. Issued24,000sharesofcommonstockforland.Theaskingpriceofthel andwas$90,000;thefair value of the land was $80,000. Issued 80,000 shares of common stock for cash at $7 per share. 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. Issued 10,000 shares of common stock for cash at $9 per share. Issued 1,000 shares of preferred stock for cash at $112 per share. Instructions Prepare the journal entries to record the above transactions