Micro Electronics completed the following stock issuance transactions

June 7 Issued 4,000 shares of $3 par value common stock for cash of $12 per share
Aug. 16 Issued 400 shares of no-par preferred stock for $25,000 cash
Sept. 19 Received equipment with a market value of $75,000 in exchange for 5,000 shares of the $3 par value common stock

Prepare the journal entries to record these transactions. Explanations are not required.
What will be an ideal response


Date Accounts and Explanation Debit Credit

June 7 Cash 48,000
Common Stock—$3 Par Value
($3 per share x 4,000 shares) 12,000
Paid-In Capital in Excess of
Par—Common ($48,000 - $12,000 ) 36,000

Aug. 16 Cash 25,000
Preferred Stock — No-Par Value 25,000

Sept. 19 Land 75,000
Common Stock—$3 Par Value
($3 per share x 5,000 shares) 15,000
Paid-In Capital in Excess of
Par—Common ($75,000 âˆ' $15,000 ) 60,000

Business

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