Answer:
The journal entries for Kathleen Battle Corporation would be as following:
Date Account Title Debit Credit
Jan 10 Cash ( 80,000 shares x $5 )...........400,000
Common Stock ( 80,000 shares x $1 )...............80,000
Paid-in Capital in Excess of Stated Value
– Common Stock.....................................................320,000
Mar 1 Cash ( 5,000 shares x $108 )..........540,000
Preferred Stock ( 5,000 shares x $100 ).............500,000
Paid-in Capital in Excesss of Par Value
– Preferred Stock.......................................................40,000
Apr 1 Land........................................................80,000
Common Stock ( 24,000 shares x $1 ).....................24,000
Paid-in Capital in Excess of Stated Value
– Common Stock...........................................................56,000
(land will be recordedd at fair value and not at asking price)
May 1 Cash ( 80,000 shares x $7 ).............560,000
Common Stock ( 80,000 shares x $1 )....................80,000
Paid-in Capital in Excess of Stated Value
– Common Stock..........................................................480,000
Aug 1 Organization Expense...........................50,000
Common Stock ( 10,000 shares x $1 ).......................10,000
Paid-in Capital in Excesss of Stated Value
– Common Stock..............................................................40,000
Sept 1 Cash ( 10,000 shares x $9 ).................90,000
Common Stock ( 10,000 shares x $1 ).......................10,000
Paid-in Capital in Excess of Stated Value
– Common Stock............................................................80,000
Nov 1 Cash ( 1,000 shares x $112 )....................112,000
Preferred Stock ( 1,000 shares x $100 )...................100,000
Paid-in Capital in Excesss of Par Value
– Preferred Stock.............................................................12,000
