Problem #4 -

(A) BBS corporation had the following transactions during the current period. March 2 - Issued 5,000 shares of $6 par value common stock to attorneys in payment of a bill for $50000 for services performed in helping the company to incorporate. June 12 - Issued 56000 shares of $6 par value common stock for cash of $536000. July 11 Issued 1030 shares of $120 par value preferred stock for cash at $170 per share.

Instructions: Journalize the above transactions

(B) Zeal Inc. Incorporation completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Zeal Inc. showed Cash of $8,000 and Zeal Inc., Capital of $45,000. Zeal Inc. incorporation follows the perpetual inventory system. May 3: Sold merchandise for cash to Seliece Co., $5,400. The cost of the merchandise sold was $4,800. May 6: Purchased merchandise on account from Rendick Co., $8,000, terms FOB Destination, 5/10, n/30, The relevant company paid the freight charge of $100. May 7: Purchased Equipment on credit $45,000. The equipment will be used by the business. May 8: Received $500 credit for merchandise inventory returned to Rendick Co. May 12: Paid Rendick Co. in full. May 15: Made refunds to Seliece Co. for defective merchandise $400. The returned merchandise had a scrap value of $50 only.

Instructions: Journalize the above transactions