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    Lindsay Corporation Journal Entries of Stock Transaction

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    17. The following transactions relate to the stockholders' equity transactions of Lindsay Corporation for its initial year of existence.

    (a) Jan. 7 Articles of incorporation are filed with the state. The state authorized the issuance of 10,000 shares of $50 par value preferred stock and 200,000 shares of $10 par value common stock.

    (b) Jan. 28 40,000 shares of common stock are issued for $14 per share.

    (c) Feb. 3 80,000 shares of common stock are issued in exchange for land and buildings that have an appraised value of $250,000 and $1,000,000, respectively. The stock traded at $15 per share on that date on the over-the-counter market.

    Prepare journal entries to record the foregoing transactions. Identify the entries by letter (a - c).

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    Solution Preview

    Item A

    Item B
    DR: Cash (14 x 40,000) 560,000
    CR: Common stock (10 x 40,000) 400,000
    CR: ...

    Solution Summary

    The solution prepares journal entries of stock transaction.