Chapter 10 - Part I Winter 2020 The following information is provided for the newly formed corporation, LAX, Inc.on January 1,2021: 4 5 Outstanding Authorized 100,000,000 1,000,000 Common stock, $1 par value: Preferred stock, 6.5%, $100 par value: 1.On 7/1/21, LAX, Inc. issued 30,000,000 shares ofofcommon stock in an initial public offerring (IPO) for $32 per share.Record the journalentry: 10 11 12 Accounts 13 Credits Date Debits 14 2021/7/1 15 16 17 2.On 9/30/21, LAX, Inc. issued 500,000 shares ofpreferred stock in exchange for land, a building, and cash worth $11,000,500,$27,995,000,and $15,000,000, respectively.Record the transaction: 18 19 20 Accounts Credits 21 Date 2021/9/30 Debits 22 23 24 25 26 27 3.On 1/1/22, LAX, Inc.exchanged 5,000,000 shares ofcommon stock for a patentand trademark, valued at$85 Million and $6.5 Million, respectively.Record the transaction: 28 29 30 Accounts 31 Credits Date Debits 32 2022/1/1 33 34 35 36 4.Update the balance ofoutstanding shares: 37 38 Outs tanding 39 Authorized Common stock, $1 par value: 40 100,000,000 Preferred stock, 6.5%, $100 par value: 1,000,000 41 42 43 The following information was announced by the Board of Directors of LAX, Inc.: 44 Event Common Preferred 45 Date Declared dividends on stock 46 04/01/22 6.50% 0.10 Date of record 04/15/22 47 48 05/05/22 Paymentdate 49 5. Make the appropriate journalentries: 50 51 Accounts 52 Credits Date Debits 20224/1 53 54 55 56 57 Debits Credits Date Accounts 58 59 2022/4/15 60 61 62 63 Accounts Credits 64 Date Debits 65 2022/5/5 66 67 68 69 6.On 6/30/22, LAX repurchased 500,000 shares ofcommon stock for $42.35 each and placed them in the treasury.Record 70 71 the transaction: 72 Accounts 73 Date Credits Debits 2022/6/30 74 75 76 7.On 12/31/22, LAXsold 10,000 shares oftreasury stock for $49.05 each. Record the transaction: 77 78 Accounts 79 Credits Date Debits 80 2022/12/31 81 82 83 84 85