Prepare journal entries


1) Maverick Inc. has outstanding 10,200 shares of $10 par value common stock.
On July 1, 2008, Maverick reacquired 114 shares at $89 per share.
On September 1, Maverick reissued 68 shares at $94 per share.
On November 1, Maverick reissued 46 shares at $87 per share.
Prepare Maverick's journal entries to record these transactions using the cost method. (List multiple debit/credit entries in order of magnitude.)

2) (Recording the Issuance of Common and Preferred Stock)

Kathleen Battle Corporation was organized on January 1, 2008. It is authorized to issue 14,300 shares of 8%, $130 par value preferred stock, and 715,000 shares of no par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.

Jan. 10 Issued 80,200 shares of common stock at $6 per share.

Mar. 1 Issued 5,100 shares of preferred stock for cash at $138 per share.

Apr. 1 Issued 24,500 shares of common stock for land. The asking price of the land was $94,300; the fair market value of theland was $82,200.

May 1 Issued 84,700 shares of common stock for cash at $9 per share.

Aug. 1 Issued 11,800 shares of common stock to attorneys in payment of their bill of $52,700 for services rendered in helpingthe company organize.

Nov. 1 Issued 1,200 shares of preferred stock for cash at $142 per share.

Prepare the journal entries to record the above transactions. (List multiple entries in order of magnitude.)

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Finance Basics: Prepare journal entries
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