Assignment (1)

Ch. (13) Corporations: Organization and Capital Stock Transactions

Prytania Corporation is authorized to issue 1,000,000 shares of $5
par value common stock. During 2017, its first year of operation, the
company has the following stock transactions.
Jan. 1 Paid the state $5,000 for incorporation fees.
Jan. 15 Issued 500,000 shares of stock at $6 per share.
Jan. 30 Attorneys for the company accepted 500 shares of
common stock as payment for legal services rendered in
helping the company incorporate. The legal services are
estimated to have a value of $7,000.
July 2 Issued 100,000 shares of stock for land. The land had an
asking price of $900,000. The stock is currently selling on a
national exchange at $8 per share.
Sept. 5 Purchased 15,000 shares of common stock for the treasury
at $9 per share.
Dec. 6 Sold 11,000 shares of the treasury stock at $11 per share.
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Instructions:

1- Journalize the transactions for Prytania Corporation.

2- Show T-account for Cash if beginning balance is $100,000 and
T-account for Common Stock

Kindly be noted that your answer should contain this

table

Date Account Dr. Cr.

Explanation
Jan 1 Organization 5000
expenses
cash 5000
Jan 16 Cash 3000000
Common stock 2500000
APIC 500000
Jan 30 Organization 7000
expenses
Common stock 2500
APIC 4500
 July 2 Land 800000

Common stock 500000

APIC 300000
Sept 5 Treasury stock 135000
Cash 135000
Dec 5 Cash 121000
Treasury stock 99000
APIC treasury 22000
stock

DR cash
CR
Beginning balance
100000 5000

3000000 135000

121000

3081000

DR common stock
CR

2500000

2500
500000

3002500