Answer:
Journal Entry
Jan 10 Debit Bank $320,000 Credit Common stock Account $160,000 Credit Paid_in_Excess Account $160,000
Mar 01 Debit Bank $525,000 Credit Preferred stock Account $500,000 Credit Paid-in-excess preferred stock $25,000
Apr 01 Debit Land $90,000 Credit Common stock $90,000
May 01 Debit Bank $360,000 Credit Common Stock $160,000 Credit Paid-in-excess $200,000
Aug 01 Debit Attorney Fees $30,000 Credit Common Stock $30,000
Sep 01 Debit Bank $50,000 Credit Common Stock $20,000 Credit Paid-in-excess $30,000
Nov 01 Debit Bank $109,000 Credit Preferred stock $100,000 Credit Cash paid-in-excess preferred $9,000
Explanation:
April 01 The purchase of land has no cash actually received for issuing shares or paid for the land therefore the full asking price is for share issued hence no cash paid in excess.
Attorney fees have same effect as the land above, there is no cash paid in excess.
