Answered

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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.

Sagot :

Answer:

Following are the  journal entries to this question:

Explanation:

Date                            account title                                  Dr.                        Cr.

Mar.2                Incorporation expense                     [tex]\$39,600[/tex]

          Common Stock (Par value[tex]=5000 \ Shares \times 7[/tex])                [tex]\$35,000[/tex]        

       Paid in excess of par- Common Stock [tex](39600-35000)[/tex]             [tex]\$4,600[/tex]

      (Bein 5000 common shares Of par value [tex]\$4[/tex] each issued )

June. 12                                       Cash                            [tex]\$519,100[/tex]

                   Common Stock (Par value [tex]-63400\ Shares \times 7[/tex])                  [tex]\$443,800[/tex]

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

July-11                    cash [tex]2175\ shares\times \$130[/tex]                   [tex]\$282,750[/tex]

               Preferred Stock (Par value [tex]=2175\ Shares \times \$110[/tex])             [tex]\$239,250[/tex]      

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

Nov. 28                         Treasury Stock                                           [tex]\$83,500[/tex]

                                     cash                                                            [tex]\$83,500[/tex]

                (Purchased 2,350 shares of treasury stock for[tex]\$83,500[/tex] ).

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