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Journalize issuance of common and preferred stock and purchase of treasury stock.

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Garza Co. had the following transactions during the current period.

Mar. 2
Issued 5,000 shares of $1 par value common stock to attorneys in payment of a bill for $30,000 for services provided in helping the company to incorporate.
June 12
Issued 60,000 shares of $1 par value common stock for cash of $375,000.

July 11
Issued 1,000 shares of $100 par value preferred stock for cash at $110 per share.

Nov. 28
Purchased 2,000 shares of treasury stock for $80,000.

Journalize the transactions.

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Solution Summary

This solution journalizes the issuance of common and preferred stock and purchase of treasury stock from March to November.

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Mar 2 DR. Expenses A/c $30,000
CR. Common Stock A/c $5,000
CR. Additional Paid-in-capital A/c ...

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