DeLong Corporation was organized on January 1, 2015. It is authorized to issue 1
ID: 2449525 • Letter: D
Question
DeLong Corporation was organized on January 1, 2015. It is authorized to issue 10,100 shares of 8%, $100 par value preferred stock, and 496,900 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 80,100 shares of common stock for cash at $4 per share.
Mar. 1 Issued 4,900 shares of preferred stock for cash at $106 per share.
Apr. 1 Issued 22,700 shares of common stock for land. The asking price of the land was $85,500. The fair value of the land was $87,800.
May 1 Issued 82,000 shares of common stock for cash at $5.22 per share.
Aug. 1 Issued 11,100 shares of common stock to attorneys in payment of their bill of $35,700 for services performed in helping the company organize.
Sept. 1 Issued 10,300 shares of common stock for cash at $6 per share.
Nov. 1 Issued 1,810 shares of preferred stock for cash at $111 per share.
Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 10
Mar. 1
Apr. 1
May 1
Aug. 1
Sept. 1
Nov. 1
Post to the stockholders’ equity accounts. (Post entries in the order of journal entries presented in the previous part.)
Preferred Stock
Date
Explanation
Ref
Debit
Credit
Balance
J5
J5
Common Stock
Date
Explanation
Ref
Debit
Credit
Balance
J5
J5
J5
J5
J5
Paid-in Capital in Excess of Par-Preferred Stock
Date
Explanation
Ref
Debit
Credit
Balance
J5
J5
Paid-in Capital in Excess of Stated Value-Common Stock
Date
Explanation
Ref
Debit
Credit
Balance
J5
J5
J5
J5
J5
Date
Account Titles and Explanation
Debit
Credit
Jan. 10
Mar. 1
Apr. 1
May 1
Aug. 1
Sept. 1
Nov. 1
------------------------------------------------------------------------------------------------------------------------------------------------------Explanation / Answer
Journal Entries Date Particular L/F Dr. Cr. 10-Jan Cash A/c Dr. $320,400 to Common Stock $160,200 to Paid in capital A/c $160,200 (Being stock issued at premium) 1-Mar Cash A/c Dr $519,400 to Preferred Stock A/c $490,000 to Paid in capital A/c $29,400 (Being preffered stock issued) 1-Apr Land A/c Dr. $87,800 to common stock $45,400 to paid in capital a/c $42,400 (Being amount paid against land) 1-May Cash A/c Dr. $428,040 to Common Stock $164,000 to paid in capital $264,040 (Being common stock issued) 1-Sep cash A/c Dr $61,800 to common stock $20,600 to paid in capital A/c $41,200 (Being common stock issued) 1-Nov Cash A/c Dr. $200,910 to Preferred Stock $181,000 to paid in Capital A/c $19,910 (Being preferred stock issued)
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