1.
Fagan Co. had these transactions during the current period.
Prepare the journal entries for the Fagan Co. transactions shown above. (Record entries in the
order displayed in the problem statement. Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
June 12 Issued 82,000 shares of $1 par value common stock for cash of $307,500.
July 11 Issued 3,660 shares of $101 par value preferred stock for cash at $108 per share.
Nov. 28 Purchased 3,390 shares of treasury stock for $9,420.
Fagan Co. had these transactions during the current period. June 12 Issued 82,000 shares of $1
par value common stock for cash of $307,500. July 11 Issued 3,660 shares of $101 par value
preferred stock for cash at $108 per share. Nov. 28 Purchased 3,390 shares of treasury stock for
$9,420. Prepare the journal entries for the Fagan Co. transactions shown above. (Record entries
in the order displayed in the problem statement. Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Solution
Dr Cash 307,500
Cr Common stock 82,000
Cr Paid-in capital in excess of par - common stock 225,500
Dr Cash 395,280
Cr Preferred stock 369,660
Cr Paid-in capital in excess of par - preferred stock 25,620

2.
Dr Cash $9,420
Cr Treasury stock $9,420.
June 12 Issued 82,000 shares of $1 par value common stock for cash of $307,500.