Question

Windsor, Inc. had the following transactions during the current period.

Mar. 2 Issued 5,600 shares of $5 par value common stock to attorneys in payment of a bill for $33,600 for services performed in helping the company to incorporate.
June 12 Issued 61,500 shares of $5 par value common stock for cash of $384,375.
July 11 Issued 1,500 shares of $100 par value preferred stock for cash at $107 per share.
Nov. 28 Purchased 1,800 shares of treasury stock for $72,000.
Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Answer 1

See the journal entries below.

Step-by-step explanation:

The journal entries will look as follows:

Date Details Debit ($) Credit ($)

Mar. 2 Attorney bill 33,600

Common stock (5,600 * $5) 28,000

APIC - Common stock (33,600 - 28,000) 5,600

(To record the issue of 5,600 shares of common share to pay Attorney Bill.)

June 12 Cash 384,375

Common stock (61,500 * $5) 307,500

APIC - Common stock (384,375- 307,500) 76,875

(To record the issue of 61,500 shares of common stock for cash.)

July 11 Cash (1,500 * $107) 160,500

Preferred stock (1,500 * $100) 150,000

APIC - Preferred stock (160,500 – 150,000) 76,875

(To record the issue of 1,500 shares of preferred stock for cash.)

Nov 28 Treasury stock 72,000

Cash 72,000

(To record the purchase of 1,800 shares of treasury stock.)

Note: APIC = Additional-paid-in-capital