Question

Wildhorse Co. had the following transactions during the current period.

Mar. 2 Issued 4,400 shares of $7 par value common stock to attorneys in payment of a bill for $36,200 for services performed in helping the company to incorporate.

June 12 Issued 64,300 shares of $7 par value common stock for cash of $528,100.

July 11 Issued 2,500 shares of $100 par value preferred stock for cash at $140 per share.

Nov. 28 Purchased 1,850 shares of treasury stock for $80,000.

Journalize the transactions.

Answer 1

Below are the journal entries for Wildhorse Co. for the current period.

Step-by-step explanation:

Mar. 2

Debit: Accounts Payable $36,200

Credit: Common Stock at ($7 x 4,400) par $30,800

Credit: Paid in capital in excess of par $5,400

To record payment of bill against issuance of common stock.

June 12

Debit: Cash $528,100

Credit: Common Stock ($7 x 64,300) $450,100

Credit: Paid in capital in excess of par $78,000

To record issuance of common stock.

July 11

Debit: Cash ($140 x 2,500) $350,000

Credit: Preferred Stock ($100 x 2,500) $250,000

Credit: Paid in capital in excess of par $100,000

To record issuance of preferred stock.

Nov. 28

Debit: Treasury Stock $80,000

Credit: Cash $80,000

To record purchase of treasury stock.