Question

Quay Co. had the following transactions during the current period.Mar. 2 Issued 5,000 shares of $7 par value common stock to attorneys in payment of a bill for $39,600 for services performed in helping the company to incorporate.June 12 Issued 63,400 shares of $7 par value common stock for cash of $519,100.July 11 Issued 2,175 shares of $110 par value preferred stock for cash at $130 per share.Nov. 28 Purchased 2,350 shares of treasury stock for $83,500.

Answer 1

Following are the journal entries to this question:

Step-by-step explanation:

Date account title Dr. Cr.

Mar.2 Incorporation expense
`\$39,600`

Common Stock (Par value
`=5000 \ Shares * 7`)
`\$35,000`

Paid in excess of par- Common Stock
`(39600-35000)`
`\$4,600`

(Bein 5000 common shares Of par value
`\$4` each issued )

June. 12 Cash
`\$519,100`

Common Stock (Par value
`-63400\ Shares * 7`)
`\$443,800`

Paid in excess of par- common stock
`(519100-443800)`
`\$75,300` (Being 63400 common shares of par value
`\$7` each issued for
`\$519100` cash)

July-11 cash
`2175\ shares* \$130`
`\$282,750`

Preferred Stock (Par value
`=2175\ Shares * \$110`)
`\$239,250`

Paid in excess of par- Preferred stock
`(282750- 239250)` (Being 2175 Prefered shares of par value
`\$110` each issued for
`\$130` each)

Nov. 28 Treasury Stock
`\$83,500`

cash
`\$83,500`

(Purchased 2,350 shares of treasury stock for
`\$83,500` ).