Chapter 10 - Part I Winter 2020 4 The following information is provided for the newly formed corporation, LAX, Inc. on January 1, 2021: Outstanding Common stock, $1 par value: Preferred stock, 6.5%, $100 par value: Authorized 100,000,000 1,000,000 10 1. On 7/1/21, LAX, Inc. issued 30,000,000 shares of of common stock in an initial public offerring (IPO) for $32 per share. Record 11 the journal entry: Accounts Debits Credits Dale 2021/7/1 18 2. On 9/30/21, LAX, Inc. issued 500,000 shares of preferred stock in exchange for land, a building, and cash 19 worth $11,000,500, $27,995,000, and $15,000,000, respectively. Record the transaction: 20 Date Accounts Debits Credits 2021/9/30 28 3. On 17/22, LAX, Inc.exchanged 5,000,000 shares of common stock for a patontand trademark, valued at $85 Million and $6.5 29 Million, respectively. Record the transaction: Accounts Debits Credits Date 2022/1/1 37 4. Update the balance ofoutstanding shares: 39 Outstanding Common stock, $1 par value: Preferred stock, 6.5%, $100 par value: Authorized 100,000,000 1,000,000 43 The following information was announced by the Board of Directors of LAX, Inc.. Date 04/01/22 04/15/22 05/05/22 Event Declared dividends on stock Date ofrecord Paymentdate Common 0.10 Preferred 6.50% 50 5. Make the appropriate journal entries: Accounts Debits Credits Date 2022/4/1 Accounts Debits Credits Date 2022/4/15 Date Accounts Debits Credits 2022/5/5 706. On 6/30/22, LAX repurchased 500,000 shares of common stock for $4235 each and placed them in the treasury. Record 71 the transaction: 73 Accounts Debits Credits Date 2022/6/30 74 75 77 7. On 12/31/22, LAX sold 10,000 shares of treasury stock for $49.05 oach. Record the transaction: Accounts Debits Credits Date 2022/12/31