P13-1A DeLong Corporation was organized on January 1, 2017. It is authorized to

Question

P13-1A DeLong Corporation was organized on January 1, 2017. It is authorized to issue 10,000 shares of8%, $100 par value pre erred stock, and 500,000 shares of no par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year Jan. 10 Issued 80,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 5,000 shares of preferred stock for cash at $105 per share. Apr 1 Issued 24,000 shares of common stock for land. The asking price of the land was $90,000. The fair value of the land was $85,000 Issued 80,000 shares of common stock for cash at $4.50 per share. May Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $30,000 for services performed in helping the company organize. Sept. 1 Issued 10,000 shares of common stock for cash at $5 per share Nov. 1 Issued 1,000 shares of preferred stock for cash at $109 per share. Instructions (a) Journalize the transactions. (b) Post to the stockholders' equity accounts. (Use J5 as the posting reference.) (c) Prepare the paid-in capital section of stockholders' equity at December 31, 2017

Explanation / Answer

(a)

(b)

Journal Entries Jan-10 Cash (80,000*4) $    320,000.00 Common Stock (80000*2) $    160,000.00 Paid in Capital- Common Stock (80000*2) $    160,000.00 (Issue of common stock 80000 shares @4 Mar-01 Cash (5000*105) $    525,000.00 Preferred Stock (5000*100) $    500,000.00 Paid in Capital- Preferred Stock (5000*5) $      25,000.00 (Issue of Preferred stock 5000 shares @105 Apr-01 Land $      85,000.00 Common Stock (24000*2) $      48,000.00 Paid in Capital-Common Stock (85000-48000) $      37,000.00 (Issue of Common stock against Land) May-01 Cash (80,000*4.5) $    360,000.00 Common Stock (80000*2) $    160,000.00 Paid in Capital-Common Stock (80000*2.5) $    200,000.00 (Issue of common stock 80000 shares @4.5 Aug-01 Service expense $      30,000.00 Common Stock (10000*2) $      20,000.00 Paid in Capital-Common Stock (10000*1) $      10,000.00 Issued common stock against service bill Sep-01 Cash (10,000*5) $      50,000.00 Common Stock (80000*2) $      20,000.00 Paid in Capital-Common Stock (80000*3) $      30,000.00 (Issue of common stock 10000 shares @5 Nov-01 Cash (1000*109) $    109,000.00 Preferred Stock (5000*100) $    100,000.00 Paid in Capital-Preferred Stock (1000*9) $        9,000.00 (Issue of Preferred stock 1000 shares @109

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