Homework SourseFagan Co had these transactions during the current period Pr
Fagan Co. had these transactions during the current period.
Prepare the journal entries for the Fagan Co. transactions shown above.
| June 12 | Issued 84,400 shares of $1 par value common stock for cash of $316,500. | |
| July 11 | Issued 4,020 shares of $101 par value preferred stock for cash at $106 per share. | |
| Nov. 28 | Purchased 1,420 shares of treasury stock for $9,930. |
Solution
June 12
Dr Bank / Cash A/c $ 3,16,500
Cr Common Stock at Par Value (84400 *$ 1) $ 84,400
Cr Securities premium A/c (Plug) $ 2,32,100
July 11
Dr DR Bank/ Cash A/c $ 426,120
Cr Preferred Stock (4020*101) $ 406,020
Cr Securities Premium A/c $ 20,100
November 28
Dr Treasury Stock $9,930
Cr Cash / Bank $9930
Dr Bank / Cash A/c $ 3,16,500
Cr Common Stock at Par Value (84400 *$ 1) $ 84,400
Cr Securities premium A/c (Plug) $ 2,32,100
Dr DR Bank/ Cash A/c $ 426,120
Cr Preferred Stock (4020*101) $ 406,020
Cr Securities Premium A/c $ 20,100
Dr Treasury Stock $9,930
Cr Cash / Bank $9930
Dr Bank / Cash A/c $ 3,16,500
Cr Common Stock at Par Value (84400 *$ 1) $ 84,400
Cr Securities premium A/c (Plug) $ 2,32,100
Dr DR Bank/ Cash A/c $ 426,120
Cr Preferred Stock (4020*101) $ 406,020
Cr Securities Premium A/c $ 20,100
Dr Treasury Stock $9,930
Cr Cash / Bank $9930
