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    Connor621's Avatar
    Connor621 Posts: 1, Reputation: 1
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    #1

    Sep 10, 2009, 05:06 PM
    Issuing Stocks
    Okay I am so lost.

    The question is:
    Heritage Products Inc. a wholesaler of office products, was organized on February 19th of the current year, with an authorization of 60,000 shares of 3% preferred stock, $40 par and 300,000 shares of $75 par common stock. The following selected transactions were completed during the first year of operations.

    Feb. 19 issued 20,000 shares of common stock at par for cash.
    Feb. 29 issued 100 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.

    Mar. 13 issued 6,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $80,000,$350,000,and $45,000 respectively.
    May 6 issued 5,000 shares of preferred stock at $46 for cash.

    Journalize the transactions.


    SOMEONE PLEASEE HELP ME! :confused::confused::confused:
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Sep 12, 2009, 10:04 AM

    I am afraid, I can not solve the problem for you, but I can surely guide you how to go about it. I think, you are not sure about Mar 13 issue of shares.

    Please remember that the transaction is to be recorded "either" at the fair value received or fair value given up, whichever is easily determinable.

    Use this concept and solve it and present your work for further guidance.
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