Question ONE 100 Marks (5 entries x 20marks each) Apex Co. was organized on January 1, 2015. It is authorized to issue

Question

Question ONE 100 Marks (5 entries x 20marks each) Apex Co. was organized on January 1, 2015. It is authorized to issue 55,000 shares of 6%, $100 par value preference shares, and 500,000 shares of ordinary shares with a par value of $2 per share. The following share transactions were completed during the first year. • Jan. 10 Issued 50,000 ordinary shares for cash at $8 per share. • Mar. 1 Issued 11,000 preference shares for cash at $130 per share. • Apr. 1 Issued 30,000 ordinary shares for building. The asking price of the building was $100,000; the fair value of the building was $80,000. May 1 Issued 80,000 ordinary shares for cash at $7 per share. Aug. 1 Issued 20,000 ordinary shares to lawyer in payment of their fees of $50,000 for services rendered in helping the company organize. Instructions Prepare the journal entries to record the above transactions.

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Date Account Titles Debit Credit Jan-10 Cash $ 400,000 Common Shares $ 100,000 Paid in Capital in excess of par - common $ 300,000 Mar-01 Cash $ 1,430,000 Preferred Shares $ 1,100,000 Paid in Capital in excess of par - preferred $ 330,000 Apr-01 Building $ 80,000 Common Shares $ 60,000 Paid in Capital in excess of par - common $ 20,000 May-01 Cash $ 560,000 Common Shares $ 160,000 Paid in Capital in excess of par - common $ 400,000 Aug-01 Organization Expenses $ 50,000 Common Shares $ 40,000 Paid in Capital in excess of par - common $ 10,000

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Question ONE 100 Marks (5 entries x 20marks each) Apex Co

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Date	Account Titles	Debit	Credit
Jan-10	Cash	$ 400,000
	Common Shares		$ 100,000
	Paid in Capital in excess of par - common		$ 300,000

Mar-01	Cash	$ 1,430,000
	Preferred Shares		$ 1,100,000
	Paid in Capital in excess of par - preferred		$ 330,000

Apr-01	Building	$ 80,000
	Common Shares		$ 60,000
	Paid in Capital in excess of par - common		$ 20,000

May-01	Cash	$ 560,000
	Common Shares		$ 160,000
	Paid in Capital in excess of par - common		$ 400,000

Aug-01	Organization Expenses	$ 50,000
	Common Shares		$ 40,000
	Paid in Capital in excess of par - common		$ 10,000