P 207A L03 e Dr Building 140000 STATED VALUE COMMON AND PREF

P 20-7A (L03) (e) Dr. Building: $140,000 STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Kris Kraft Stores had the following stock transactions during the year (a) Issued 8,000 shares of no-par common stock with a stated value of $5 per share for $40,000 cash (b) Issued 6,000 shares of no-par common stock with a stated value of $5 per share for $33,000 cash Issued 5,000 shares of no-par, 6% preferred stock with a stated value of $15 per share for $75,000 cash 807 808 (c) (d) Issued 10,000 shares of $5 par common stock for land with a fair market value of $50,000 (e) Issued 20,000 shares of $5 par common stock with a $7 fair market value for a building with an uncertain fair market value.

Solution

Solution:-

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Transaction	General Journal	Debit	Credit
(a)	Cash	40,000
	Common stock no par		40,000
(b)	Cash	33,000
	Common stock (6,000 * 5)		30,000
	Paid-in capital in excess of par- common stock		3,000
(c)	Cash	75,000
	6% Preferred stock		75,000
(d)	Land	50,000
	Common stock		50,000
(e)	Building	140,000
	Common stock		100,000
	Pain-up capital in excess of par- common stock		40,000
(f)	Land	405,000
	8% preferred stock (8,000 * $50)		400,000
	Paid-up capital in excess of par - preferred stock		5,000