Problem #1 — Issuing stock
Bellvue Products Inc., a wholesaler of office products, was organized
on January 30 of the current year, with an authorization of 80,000 shares of 2%
preferred stock, $75 par and 800,000 shares of $20 par common stock. The
following selected transactions were completed during the first year of
operations:
Jan. 30. Issued
300,000 shares of common stock at par for cash.
31. Issued
750 shares of common stock at par to an attorney in payment of legal fees for
organizing the corporation.
Feb. 21. Issued
32,000 shares of common stock in exchange for land, buildings, and equipment
with fair market prices of $150,000, $460,000, and $90,000, respectively.
Mar. 2. Issued
15,000 shares of preferred stock at $77.50 for cash. Journalize the
transactions.
Journalize the entries to record the transactions.
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