Issuing Stock: Newgen Products Inc., a wholesaler of office products, was organized on January 30 of the current year, with an authorization of 125,000 shares of 1% preferred stock, $60 par and 650,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions: Jan. 31 Issued 500 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. Solution Date                 particulars                           LF                  Debit            Credit Jan 31            Organisation cost A/c Dr                          $5,000 To Common Stock A/c                                                 $5,000 (Being 500 shares * $10 =$5,000 as recorded as legal cost by issuing the common share) .

1. Issuing Stock:
Newgen Products Inc., a wholesaler of office products, was organized on January 30 of the
current year, with an authorization of 125,000 shares of 1% preferred stock, $60 par and 650,000
shares of $10 par common stock. The following selected transactions were completed during the
first year of operations:
Journalize the transactions:
Jan. 31 Issued 500 shares of common stock at par to an attorney in payment of legal fees for
organizing the corporation.
Solution
Date               Â
particulars                         Â
LF                 Debit           Credit
Jan 31Â Â Â Â Â Â Â Â Â Â Â Organisation cost A/c
Dr                         $5,000
To Common Stock
A/c                                     Â
          $5,000
(Being 500 shares * $10 =$5,000
as recorded as legal cost by issuing
the common share)