Issuing stock
Wildwood Nursery, with an authorization of 50,000 shares of preferred stock and 400,000 shares of common stock, completed several transactions involving its stock on June 1, the first day of operations. The trial balance at the close of the day follows:
|
Cash
|
1,584,000
|
|
|
Land
|
350,000
|
|
|
Buildings
|
910,000
|
|
|
Preferred 3% Stock, $120 par
|
|
1,200,000
|
|
Paid-In Capital in Excess of Par-Preferred Stock
|
|
60,000
|
|
Common Stock, $50 par
|
|
1,500,000
|
|
Paid-In Capital in Excess of Par-Common Stock
|
|
84,000
|
|
2,844,000
|
2,844,000
|
All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings.
Journalize the two entries to record the transactions summarized in the trial balance.