Ergonomics Supply Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 26,000 shares of preferred 2% stock, $100 par, and 600,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations:July1.Issued 200,000 shares of common stock at par for cash. 1.Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.Aug.7.Issued 66,200 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $149,800, $474,380 and $163,600 respectively.Sept.20.Issued 19,400 shares of preferred stock at $107 for cash.

If the shares are issued in exchange for fixed assets and the market value of fixed assets is more…

Answered: Ergonomics Supply Inc., a wholesaler of…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...

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Ergonomics Supply Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 26,000 shares of preferred 2% stock, $100 par, and 600,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations:

July	1.	Issued 200,000 shares of common stock at par for cash.
	1.	Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
Aug.	7.	Issued 66,200 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $149,800, $474,380 and $163,600 respectively.
Sept.	20.	Issued 19,400 shares of preferred stock at $107 for cash.

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