Answer: Please refer to Explanation
Explanation:
Jul 1
DR Cash (400,000 * 7) $2,800,000
CR Common Stock $2,800,000
(To record common stock issued)
July 1
DR Organisation Expense (1,000*7) $7,000
CR Common Stock $7,000
(To record Common Stock Issue)
Aug 7
DR Land $250,000
DR Building $400,000
DR Equipment $70,000
CR Common Stock $560,000
CR Paid in capital excess of par value - Common stock $160,000
( To record Exchange of common stock for PPE)
Sep 20
DR Cash (25,000 * 44) $1,100,000
CR Preferred Stock (25,000*40) $1,000,000
Paid in Excess Capital of Par Value Preferred Shares $100,000
(To record issue of Preference Shares)
If you need any clarification do comment.
