Problem 12-2

How to I journalize stock issuances for cash and property; prepare resulting balance sheet (L.O.5)

On December 27, 2018, Glade Company was authorized to issue 10,000 shares of $2.50 par value preferred stock and 300,000 shares of $22 par value common stock. It then completed the following transactions in the month of January 2019:

Transactions

2019

Jan.14 Issued 45,000 shares of common stock at $28 per share for cash.

15Issued 1,000 shares of preferred stock for $50,000.

19Exchanged 50,000 shares of common stock for the following assets at the indicated fair market values:

Land $208,000

Building 540,000

Machinery 740,000

a.How do I prepare general journal entries to record the transactions.

b. How do I prepare the balance sheet of the company as of January 31, 2019.