Question

Quay Co. had the following transactions during the current period.Mar. 2 Issued 5,000 shares of $7 par value common stock to attorneys in payment of a bill for $39,600 for services performed in helping the company to incorporate.June 12 Issued 63,400 shares of $7 par value common stock for cash of $519,100.July 11 Issued 2,175 shares of $110 par value preferred stock for cash at $130 per share.Nov. 28 Purchased 2,350 shares of treasury stock for $83,500.

Answer 1

Answer:

Following are the  journal entries to this question:

Explanation:

Date                            account title                                  Dr.                        Cr.

Mar.2                Incorporation expense                     $\ 39,600$

          Common Stock (Par value$=5000 \ Shares \times 7$)                $\ 35,000$        

       Paid in excess of par- Common Stock $(39600-35000)$             $\ 4,600$

      (Bein 5000 common shares Of par value $\ 4$ each issued )

June. 12                                       Cash                            $\ 519,100$

                   Common Stock (Par value $-63400\ Shares \times 7$)                  $\ 443,800$

        Paid in excess of par- common stock $(519100-443800)$              $\ 75,300$ (Being 63400 common shares of par value $\ 7$ each issued for $\ 519100$ cash)

July-11                    cash $2175\ shares\times \ 130$                   $\ 282,750$

               Preferred Stock (Par value $=2175\ Shares \times \ 110$)             $\ 239,250$      

               Paid in excess of par- Preferred stock $(282750- 239250)$                               (Being 2175 Prefered shares of par value $\ 110$ each issued for $\ 130$ each)

Nov. 28                         Treasury Stock                                           $\ 83,500$

                                     cash                                                            $\ 83,500$

                (Purchased 2,350 shares of treasury stock for$\ 83,500$ ).