Question

Occupational Products Inc., a wholesaler of office products, was organized on March 1 of the current year, with an authorization of 27,000 shares of preferred 2% stock, $100 par and 600,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations:

Mar. 1 Issued 213,000 shares of common stock at par for cash.
1 Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
May 31 Issued 69,400 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $149,100, $505,120 and $164,700 respectively.
Jul. 1 Issued 17,600 shares of preferred stock at $105 for cash.

Answer 1

The journal entries for these transactions would be:

March 1:

Cash $2,130,000

Common Stock $2,130,000

Legal Expense $4,000

Common Stock $4,000

May 31:

Land $149,100

Buildings $505,120

Equipment $164,700

Common Stock $694,920

July 1:

Cash $1,848,000

Preferred Stock $1,848,000

According to the given search results, Occupational Products Inc. was organized on March 1 of the current year with an authorization of 27,000 shares of preferred 2% stock, $100 par, and 600,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations:

March 1: Issued 213,000 shares of common stock at par for cash.

March 1: Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.

May 31: Issued 69,400 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $149,100, $505,120, and $164,700, respectively.

July 1: Issued 17,600 shares of preferred stock at $105 for cash.