Information World Digest Co organized on June 1, 2020 and is raising money by issuing...
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Accounting
Information World Digest Co organized on June 1, 2020 and is raising money by issuing bonds. The company is authorized to issue 200,000 shares of 4%, no par common stock with a stated value of $2 per share. They are also authorized to issue 50,000 shares of 6%, $50 par value, preferred stock.
The following transactions occurred during the first year of operations.
15-Jun-20
Issued 20,000 shares of common stock for cash at $22/share
15-Aug-20
Issued 20,000 shares of common stock for cash at $26/share
15-Nov-20
Issued 5,000 shares of preferred stock in return for legal services that otherwise would have cost $32,000.
1-Jan-21
Issued 60,000 shares of common stock in return for a storage warehouse listed for sale for $400,000 with a FMW of $360,000.
1-Feb-21
Issued 5,000 shares of preferred stock for cash at $55/share
Make the journal entries to record the transactions.
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