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Willow Creek Nursery
Willow Creek Nursery, with an authorization of 75,000 shares of preferred stock and 200,000 shares of common stock, completed several transactions involving its stock on October 1, the first day of operations. The trial balance at the close of the day follows:
Cash
3,780,000
Land
840,000
Buildings
2,380,000
Preferred 1% Stock, $80 par
2,800,000
Paid-In Capital in Excess of Par-Preferred Stock
420,000
Common Stock, $30 par
3,600,000
Paid-In Capital in Excess of Par-Common Stock
180,000
7,000,000
All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings. Hide
Journalize the entries to record the (1) common and (2) preferred stock transactions summarized in the trial balance.
1. For a compound transaction, if an amount box does not require an entry, leave it blank.
2. For a compound transaction, if an amount box does not require an entry, leave it blank.
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