BUS 208 Principles of Accounting II

Homework Assignment 2
February 20. Issued 150,000 shares of common stock at par for cash
Debit Cash $3,000,000 (150,000 x par $20)
Credit Common stock $3,000,000
February 28. Issued 700 shares of common stock at par to an attorney in payment of legal fees for
organizing the corporation
Debit Organization costs (expense) $14,000 (700 x par $20)
Credit Common stock $14,000
March 6. Issued 18,000 shares of common stock in exchange for land, building, and equipment with fair
market prices of $80,000, $310,000 and $45,000, respectively
Debit Land $ 80,000
Debit Building $310,000
Debit Equipment $45,000
Credit Common stock $360,000 (18,000 x par $20)
Credit Paid-in capital in excess of par - common $75,000
April 29. Issued 25,000 shares of preferred stock at $65 for cash
Debit Cash $1,625,000 (25,000 x $65)
Credit Preferred stock $1,500,000 (25,000 x par $60)
Credit Paid-in capital in excess of par - preferred $125,000