Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show steps Madison Inc. was incorporated in the State of Delaware in May 2018 and received authorization to issue 200,000 shares of $3 Par
Please show steps
Madison Inc. was incorporated in the State of Delaware in May 2018 and received authorization to issue 200,000 shares of $3 Par Value Common Stock and 20,000 Preferred Stock, Par Value $50 per share. Prepare journal entries to record the following transactions. |
(a) On June 15, 2018 Madison Inc. issued 75,000 common shares with a Market price of $10 | ||||||||||||||||||||||||||||||||||||||||||||
(b) On July 8, 2018 Madison Inc. issued 500 common shares to Mr. Maddox in settlement of Professional Services provided at a fee of $7,800 | ||||||||||||||||||||||||||||||||||||||||||||
c On July 18, 2018 Mr. Herve agreed to exchange a Building he owns with a fair value of $700,000 for 39,500 shares. Madison Inc. shares are actively traded at $15 per share on the stock exchange. | ||||||||||||||||||||||||||||||||||||||||||||
(d) On July 1, 2018 Madison Inc. issued 50,000 shares for cash at a Market price of $19 per share | ||||||||||||||||||||||||||||||||||||||||||||
(e) On November 10 Mr. Warren, a prominent investor agreed to exchange a piece of land assessed and valued by the City of Maryland at $800,000 for 12,000 of the preferred stock. The market price of the preferred stock is not known.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started