Question Details

(Solution) - On January 31 of the current year the following accounts

Brief item decscription

Solution download


Item details:

On January 31 of the current year, the following accounts and their balances appear in the ledger of Gargantuan Corp., a meat processor:
Preferred 3% Stock, $25 par (50,000 shares authorized,
30,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 750,000
Paid-In Capital in Excess of Par?Preferred Stock . . . . . . . . . . . 90,000
Common Stock, $30 par (400,000 shares authorized,
120,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,600,000
Paid-In Capital in Excess of Par?Common Stock . . . . . . . . . . . 300,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,794,000
At the annual stockholders' meeting on April 2, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $2,550,000. The plan provided (a) that a building, valued at $1,200,000, and the land on which it is located, valued at $300,000, be acquired in accordance with preliminary negotiations by the issuance of 45,000 shares of common stock, (b) that 15,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $500,000. The plan was approved by the stockholders and accomplished by the following transactions:
June 6. Issued 45,000 shares of common stock in exchange for land and a building, according to the plan.
14. Issued 15,000 shares of preferred stock, receiving $36 per share in cash.
30. Borrowed $500,000 from Mt. Baker National Bank, giving a 7% mortgage note.
No other transactions occurred during June.

Instructions
Journalize the entries to record the foregoing transactions.

 







About this question:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Jul 11, 2017

PRICE: $15

Solution~000667688.zip (18.37 KB)

Buy this answer for only: $15

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.
SiteLock

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now