ACC 363 E12-2 Garza Co
Axia College of University of Phoenix (UoP)
Financial Accounting: Weygandt, Kieso, and Kimmel, 5th Edition
Financial Accounting II
Exercise E12-2, Journalize issuance of common and preferred stock and purchase of treasury stock.
E12-2 Garza Co. had the following transactions during the current period. SOLUTION
Mar. 2 Issued 5,000 shares of $1 par value common stock to attorneys in payment of a bill for
$30,000 for services provided in helping the company to incorporate.
June 12 Issued 60,000 shares of $1 par value common stock for cash of $375,000.
July 11 Issued 1,000 shares of $100 par value preferred stock for cash at $110 per share.
Nov. 28 Purchased 2,000 shares of treasury stock for $80,000.
Instructions
Journalize the transactions.
