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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 Preview

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

    Solution Summary

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

    $2.19

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