Answer:
The Journal entries are as follows:
(i) cash A/c Dr. $84,000
To Common stock, $10 par value $70,000
To Paid-in capital in excess of par value, Common stock $14,000
(To record the issuance of stock)
(ii) Organization expenses A/c Dr. $55,000
To Common stock, $2 stated value $7,000
To Paid-in capital in excess of stated value, Common stock $48,000
(To record the issuance of stock)
(iii) Organization expenses A/c Dr. $55,000
To Common stock, no-par value $55,000
(To record the issuance of stock)
(iv) Cash A/c Dr. $142,500
To Preferred stock, $50 par value[1,750 × $50) $87,500
To Paid-in capital in excess of par value, preferred stock $55,000
(To record the issuance of stock)
