Respuesta :
Answer and Explanation:
The Journal entry is shown below:-
1. Organization expense Dr, $30,000
To Common stock $25,000
(5,000 × $5)
To Addition paid in capital-common stock $5,000
(Being issue of common stock for payment of organization fees is recorded)
2. Cash Dr, $375,000
To Common stock $300,000
(60,000 × $5)
To Addition paid in capital-common stock $75,000
(Being issue of common stock is recorded)
3. Cash Dr, $110,000
($1,000 × $110)
To Preferred stock $100,000
($1,000 × $100)
To Addition paid in capital-Preferred stock $10,000
(Being issue of preferred stock is recorded)
4. Treasury stock Dr, $80,000
To Cash $80,000
(Being repurchase of own stock is recorded)
