Sunland Corporation was organized on January 1 2017 It is au

Sunland Corporation was organized on January 1, 2017, It is authorized to issue 9,500 shares of 8%, $100 par value preferred stock, and 516,800 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 80,020 shares of common stock for cash at $7 per share. Mar. Issued 5,750 shares of preferred stock for cash at $111 per share. AprIssued 24,660 shares of common stock for land. The asking price of the land was $91,520; the fair value of the land was $80,020. May 1 Issued 80,020 shares of common stock for cash at $9 per share. Aug. 1Issued 9,500 shares of common stock to attorneys in payment of their bill of $49,100 for services rendered in helping the company organize. Issued 9,500 shares of common stock for cash at $11 per share. Issued 970 shares of preferred stock for cash at $115 per share. Sept. 1 Nov. 1 Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is etered. Do not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter O for the amounts.)

Solution

Journal Entry Date Particulars Dr. Amt. Cr. Amt. 10-Jan Cash    560,140.00 80,020 Shares X $7 Common Stock      80,020.00 80,020 Shares X $1 Paid-in Capital in Excess of Par - Common Stock    480,120.00 80,020 Shares X $6 (record the issue of common stock) 1-Mar Cash    638,250.00 5,750 Shares X $111 Preferred Stock    575,000.00 5,750 Shares X $100 Paid-in Capital in Excess of Par - Preferred Stock      63,250.00 5,750 Shares X $11 (record the issue of preferred stock) 1-Apr Land      80,020.00 Common Stock      24,660.00 24,660 Shares X $1 Paid-in Capital in Excess of Par - Common Stock      55,360.00 $80,020 - $24,660 (record the issue of common stock in exchange of Land) 1-May Cash    720,180.00 80,020 Shares X $9 Common Stock      80,020.00 80,020 Shares X $1 Paid-in Capital in Excess of Par - Common Stock    640,160.00 80,020 Shares X $8 (record the issue of common stock) 1-Aug Organizational Expense      49,100.00 Common Stock        9,500.00 9,500 Shares X $1 Paid-in Capital in Excess of Par - Common Stock      39,600.00 $49,100 - $9,500 (record the issue of common stock in exchange payment of legal charges) 1-Sep Cash    104,500.00 9,500 Shares X $11 Common Stock        9,500.00 9,500 Shares X $1 Paid-in Capital in Excess of Par - Common Stock      95,000.00 9,500 Shares X $10 (record the issue of common stock) 1-Nov Cash    111,550.00 970 Shares X $115 Preferred Stock      97,000.00 970 Shares X $100 Paid-in Capital in Excess of Par - Preferred Stock        4,850.00 970 Shares X $5 (record the issue of preferred stock)