Sheridan Corporation was organized on January 1, 2017. It is authorized to issue

Question

Sheridan Corporation was organized on January 1, 2017. It is authorized to issue 10,600 shares of 8%, $100 par value preferred stock, and 538,200 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 80,710 shares of common stock for cash at $7 per share. Mar. 1 Issued 6,000 shares of preferred stock for cash at $113 per share. Apr. 1 Issued 24,600 shares of common stock for land. The asking price of the land was $91,730; the fair value of the land was $80,710. May 1 Issued 80,710 shares of common stock for cash at $9 per share. Aug. 1 Issued 10,600 shares of common stock to attorneys in payment of their bill of $48,100 for services rendered in helping the company organize. Sept. 1 Issued 10,600 shares of common stock for cash at $11 per share. Nov. 1 Issued 990 shares of preferred stock for cash at $117 per share.

Explanation / Answer

Additional paid in capital (APIC) is any payment received from investors for stock that exceeds the par value of the stock

DATE PARTICULAR DEBIT CREDIT Jan 10 cash (80710*7) $564,970 Common stock(80710*$1) $80,710 Common stock (APIC) $484,260 Mar 1 cash (6000*$113) $678,000 Preferred stock(6000*$100) $600,000 Preferred stock(APIC) $78,000 Apr 1 Land (fair value) $80,710 Common stock(24600*$1) $24,600 Common stock(APIC) $56,110 May 1 Cash (80710*$9) $726,390 Common stock(80710*$1) $80710 Common stock (APIC) $645,680 Aug 1 Organizational expenses $48,100 Common stock (10600*$1) $10600 Common stock(APIC) $37,500 Sep 1 Cash(10600*$11) $116,600 Common stock(10600*$1) 10600 Common stock(APIC) $106,000 Nov. 1 Cash(990*$117) $115,830 Preferred stock(990*100) $99,000 Preferred stock(APIC) $16,830

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.