Best Footwear Ever was incorporated in the State of Delaware in August 2009 and received authorization to issue 100,000 shares of $1.50 Par Value Common Stock. Prepare journal entries to record the following transactions. QA 1 What journal entry would you make on the authorization date? 2 (a) On September 1, 2009 Best Footwear Ever issued 50,000 shares with a Market price of $8 (b) On January 15, 2010 Best Footwear Ever issued 5,000 shares to Stella Jones, CPA in settlement of Professional Accounting Services Provided at a fee of $8,500 4 C On February 10, 2010 Mr. Martin agreed to exchange a piece of land he owns with a fair value of $220,000 for 15,000 shares. Best Footwear Ever Shares are actively traded at $12 per share on the stock exchange. 5 (d) On July 1, 2010 Best Footwear Ever issued 20,000 shares for cash at a Market price of $15 6 As of July 30, how many shares have been issued and how many are outstanding? On September 1, 2017 Magna Highend Vehicles a New York based sole proprietorship needed funds to expand to New Jersey and Connecticut so the company incorporated in New York State. New York State, by its charter, authorized Magna Vehicles to issue 20,000 shares of $50 par value, preferred stock and 50,000 shares of no-par common stock. The Board of Directors assigned a $0.50 stated value to the common stock. QB Prepare journal entries to record the following transactions 7 (a) On October 3, 2017 an investor agreed to exchange a building asses sed and valued by the City of New York at $800,000 for 15,000 of the preferred stock. The market price of the preferred stock is not known. 8 (b) On Nov 8, the remaining 5000 preferred stock were sold cash at $70 per share. 9On Dec. 3, 2017 the 50,000 no-paro-stated value common stock were sold for cash at a market price of $15 per share QC Delila Catering is authorized to issue 45,000 no-par shares on January 1, 2016 Prepare journal entries to record the following transactions 10 (a) On March 1, 2016 Delila Catering issued 15,000 shares with a Market price of $18 per share (b) On April 15, 2016 Delila Catering issued 5,000 shares with a Market price of $10 per share in settlement of a legal fee of $6,500 On June 10, 2016 the company sold the remaining 25,000 shares for cash at a market price of 22 per share 12