A corporation received its charter and began business this year. The company is authorized to issue 500,000 shares of $100 par, 6%, noncumulative, nonparticipating preferred stock, and 1,000,000 shares of no-par common stock. The following selected transactions occurred during this year: Mar. 5Issued 250 shares of preferred stock for $102 cash per share. July 15Exchanged 750 shares of common stock for $12,000 in legal services incurred in the organization of the company. Prepare journal entries to record these transactions.
What will be an ideal response?
| Mar. 5 | Cash (250 * $102) …………………….. | 25,500 | ? | |
| ? | Preferred Stock (250 * $100) …….. | ? | 25,000 | |
| ? | Paid-in Capital in Excess of | ? | ? | ? |
| ? | Par Value, Preferred Stock …….. | ? | 500 | |
| Jul. 15 | Organization Expenses | 12,000 | ? | |
| ? | Common Stock, No-Par………….… | ? | 12,000 |
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