1. Issuing Shares of ownership of a corporation.Stock

   Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 75,000 shares of A class of stock with preferential rights over common stock.preferred 2% stock, $70 A dollar amount assigned to each share of stock.par and 400,000 shares of $25 par The stock outstanding when a corporation has issued only one class of stock.common stock. The following selected transactions were completed during the first year of operations:

   Journalize the transactions.

   If an amount box does not require an entry, leave it blank.

   Feb. 5. Issued 120,000 shares of common stock at par for cash.

   Feb. 5.	Cash Cash Common Stock Organizational Expenses Paid-In Capital in Excess of Par-Common Stock Preferred Stock Retained Earnings	fill in the blank 67dd5bf82fa7ffe_2	fill in the blank 67dd5bf82fa7ffe_3
   	Common Stock Cash Common Stock Organizational Expenses Paid-In Capital in Excess of Par-Common Stock Preferred Stock Retained Earnings	fill in the blank 67dd5bf82fa7ffe_5	fill in the blank 67dd5bf82fa7ffe_6

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   What is the company receiving and at what price is the stock being issued?

   Feb. 5. Issued 450 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.

   Feb. 5.	Organizational Expenses Common Stock Land Organizational Expenses Paid-In Capital in Excess of Par-Common Stock Preferred Stock Retained Earnings	fill in the blank 3081f4ffd01cfb3_2	fill in the blank 3081f4ffd01cfb3_3
   	Common Stock Buildings Common Stock Organizational Expenses Paid-In Capital in Excess of Par-Common Stock Preferred Stock Retained Earnings	fill in the blank 3081f4ffd01cfb3_5	fill in the blank 3081f4ffd01cfb3_6

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   Recall that stock may be issued for reasons other than to receive cash. What are these shares paying for?

   Apr. 9. Issued 20,500 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $96,000, $524,000, and $118,000, respectively.

   Apr. 9.	Land Common Stock Land Paid-In Capital in Excess of Par-Common Stock Paid-In Capital in Excess of Par-Preferred Stock Preferred Stock Retained Earnings	fill in the blank 0efa24fbffb2058_2	fill in the blank 0efa24fbffb2058_3
   	Buildings Buildings Cash Common Stock Paid-In Capital in Excess of Par-Common Stock Preferred Stock Retained Earnings	fill in the blank 0efa24fbffb2058_5	fill in the blank 0efa24fbffb2058_6
   	Equipment Cash Common Stock Equipment Paid-In Capital in Excess of Par-Common Stock Paid-In Capital in Excess of Par-Preferred Stock Retained Earnings	fill in the blank 0efa24fbffb2058_8	fill in the blank 0efa24fbffb2058_9
   	Common Stock Cash Common Stock Equipment Paid-In Capital in Excess of Par-Preferred Stock Preferred Stock Retained Earnings	fill in the blank 0efa24fbffb2058_11	fill in the blank 0efa24fbffb2058_12
   	Paid-In Capital in Excess of Par-Common Stock Buildings Cash Land Paid-In Capital in Excess of Par-Common Stock Paid-In Capital in Excess of Par-Preferred Stock Retained Earnings	fill in the blank 0efa24fbffb2058_14	fill in the blank 0efa24fbffb2058_15

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   Record the assets, and increase the common stock account by the par value of the shares. Record any amount above par in a separate paid-in capital equity account.

   Recall that shares of stock can be issued to acquire assets. At what value must the preferred stock and common stock accounts be recorded?

   June 14. Issued 20,000 shares of preferred stock at $82 for cash.

   June 14.	Cash Cash Common Stock Paid-In Capital in Excess of Par-Common Stock Paid-In Capital in Excess of Par-Preferred Stock Preferred Stock Retained Earnings	fill in the blank 9bf43001005b052_2	fill in the blank 9bf43001005b052_3
   	Preferred Stock Cash Common Stock Land Paid-In Capital in Excess of Par-Common Stock Preferred Stock Retained Earnings	fill in the blank 9bf43001005b052_5	fill in the blank 9bf43001005b052_6
   	Paid-In Capital in Excess of Par-Preferred Stock Buildings Cash Common Stock Paid-In Capital in Excess of Par-Common Stock Paid-In Capital in Excess of Par-Preferred Stock Retained Earnings	fill in the blank 9bf43001005b052_8	fill in the blank 9bf43001005b052_9

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