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.
Please see the attached file.
Mar. 2  Organization Expense 30,000
Common Stock (5,000 X $1) 5,000
Paid-in Capital in Excess ...
The solution explains the journal entries to be made for various capital stock transactions undertaken by Garza Co.