Question
2. United Rentals Corporation is authorized to issue 100,000 shares of 5%, $60 par value preferred stock and 5,000,000 shares of no-par common stock with
2. United Rentals Corporation is authorized to issue 100,000 shares of 5%, $60 par value preferred stock and 5,000,000 shares of no-par common stock with a stated value of $3 per share. During 2016, its first year of operation, the company has the following transactions.
Jan. 1 Issued 15,000 shares of preferred stock for cash at $105 per share.
Jan. 15 Issued 500,000 shares of common stock for cash at $10 per share.
Mar. 2 Issued 20,000 shares of common stock for land. The land had an
asking price of $310,000. The stock is currently selling
on a national exchange at $15 per share.
Apr. 30 Issued 4,000 shares of common stock to attorneys in payment of
their bill for $72,000 for legal services rendered in helping the
company incorporate.
Sept. 5 Purchased 12,000 shares of its own common stock at
$17 per share.
Dec. 6 Sold 8,000 shares of the treasury stock at $20 per share.
Dec. 10 Sold the remaining treasury stock for $15 per share.
INSTRUCTIONS
Journalize the transactions for United Rentals Corporation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started