Answer:
Explanation:
Jan 10 Issue of common stock for cash
Dr Cash 400,000 [80,000*5]
Cr Common stock 80,000 [80,000*1]
Cr Additional paid in capital - Common Stock [80,000*4] 320,000
Mar 1 Issue of preferred stock foor cash
Dr Cash 540,000 [5000*108]
Cr Preferred stock [5000*1000] 500,000
Cr Additional Paid in capital - Preferred stock 40,000
Apr 1 Issue of common stock for land
Dr Land 80,000
Cr Common stock 24,000
Cr Additional paid in capital - Common stock 56,000
May 1 Issue of common stock for cash
Dr Cash [80,000*7] 560,000
Cr Common stock [80,000*1] 80,000
Cr Additional paid in capital - Common stock 480,000
Aug 1
Dr Attorney 50,000
Cr Common stock [1*10,000] 10,000
Cr Additional paid in capital - Common stock 40,000
Sep 1 Issue of common stock for cash
Dr Cash [10,000*9] 90,000
Cr Common stock [10,000*1] 10,000
Cr Additional paid in capital - Common stock 80,000
Nov 1 Issue of preferred stock foor cash
Dr Cash 112,000 [1000*112]
Cr Preferred stock [1000*100] 100,000
Cr Additional Paid in capital - Preferred stock 12,000
