Lodi Company is authorized to issue 100,000 shares of no par, $6 stated value common stock and 10,000 shares of 9 , $100 par preferred stock It enters into the following transactions on December 31 1 Accepts a subscription contract to 7,000 shares of common stock at $42 per share and receives a 30 down payment 2 Collects the remaining balance of the subscription contract and issues the common stock 3 Acquires a building by paying $4,000 cash and issuing 3,000 shares of common stock and 900 shares of preferred stock Common stock is currently selling at $46 per share preferred stock has no current market value The building is appraised at $2,270,000 4 Sells 1,000 shares of common stock at $48 per share 5 Sells 900 shares of preferred stock at $110 per share 6 Declares a three for one stock split on the common stock, reducing the stated value to $2 00 per share Required Prepare the journal entries to record the preceding transactions CHART OF ACCOUNTS Lodi Company General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 172 Building 181 Equipment 189 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 305 Preferred Stock 311 Common Stock 312 Common Stock Subscribed 318 Additional Paid in Capital on Preferred Stock 320 Additional Paid in Capital on Common Stock 326 Subscriptions Receivable 331 Retained Earnings REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense

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Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and 10,000 shares of 9%, $100 par preferred stock. It enters

Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and 10,000 shares of 9%, $100 par preferred stock. It enters into the following transactions on December 31:

1.	Accepts a subscription contract to 7,000 shares of common stock at $42 per share and receives a 30% down payment.
2.	Collects the remaining balance of the subscription contract and issues the common stock.
3.	Acquires a building by paying $4,000 cash and issuing 3,000 shares of common stock and 900 shares of preferred stock. Common stock is currently selling at $46 per share; preferred stock has no current market value. The building is appraised at $2,270,000.
4.	Sells 1,000 shares of common stock at $48 per share.
5.	Sells 900 shares of preferred stock at $110 per share.
6.	Declares a three-for-one stock split on the common stock, reducing the stated value to $2.00 per share.

Required:

Prepare the journal entries to record the preceding transactions.

CHART OF ACCOUNTS

Lodi Company

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
172	Building
181	Equipment
189	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
305	Preferred Stock
311	Common Stock
312	Common Stock Subscribed
318	Additional Paid-in Capital on Preferred Stock
320	Additional Paid-in Capital on Common Stock
326	Subscriptions Receivable
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense