Ivanhoe Company had these transactions during the current period. June 12 Issued 86,500 shares of $1 par value common stock for cash of $324,375. July 11 Issued 3,100 shares of $103 par value preferred stock for cash at $108 per share. Nov. 28 Purchased 1,800 shares of treasury stock for $9,350. Prepare the journal entries for the Ivanhoe Company transactions shown above. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer and Explanation:

The journal entries are shown below:

On June 12

Cash$324,375  

      To Common stock  $86,500     (86,500 shares × $1)

      To Paid in capital in excess of par - Common stock  $237,875

(being the issuance of the common stock is recorded)  

On July 11

Cash$334,800  (3,100 shares × $108)

 To Preferred stock  $319,300(3,100 shares × $103)

 To Paid in capital in excess of par - Preferred stock$15,500  

(being the issuance of the preferred stock is recorded)  

On Nov 28

Treasury stock$9,350

          To Cash     $9,350

(being the purchase of treasury stock is recorded)  

88 because 4 plus 4 equals 8. 40 plus 40 equals 80. 80 plus 8 equals 88