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    Journal Entries for Garza Co.

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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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    Please see the attached file.

    Mar. 2  Organization Expense 30,000 
    Common Stock (5,000 X $1) 5,000  
    Paid-in Capital in Excess ...

    Solution Summary

    The solution explains the journal entries to be made for various capital stock transactions undertaken by Garza Co.

    $2.49

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