Question

On January 22, Muir Corporation issued for cash 20,000 shares of no-par common stock at $30. On February 14, Muir issued at par 3,000 shares of 6%, $50 par preferred stock for cash. On August 30, Muir Corporation issued for cash 25,000 shares of preferred 6% stock, $50 par at $54. Journalize the entries to record the January 22, February 14, and August 30 transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.

Answer 1

Answer:

Jan 22

Dr Cash 600,000

Cr Common stock 600,000

Feb 14

Dr Cash 150,000

Cr Preferred stock 150,000

Aug 30

Dr Cash 1,350,000

Cr Preferred stock 1,250,000

Cr Paid in capital excess of par preferred stock 100,000

Explanation:

Muir Corporation Journal entries

Date Accounts Debit Credit

Jan 22

Dr Cash (20,000*30) 600,000

Cr Common stock 600,000

Feb 14

Dr Cash (3000*50) 150,000

Cr Preferred stock 150,000

Aug 30

Dr Cash (25,000*54) 1,350,000

Cr Preferred stock (25,000*50) 1,250,000

Cr Paid in capital excess of par preferred stock 100,000