A) Journalize the Transaction (Please explain/write the math formula ex: 4x75,00

Question

A) Journalize the Transaction (Please explain/write the math formula ex: 4x75,000=600000 and clear on the title)
B) Post to the stockholders' equity accounts
C) Prepare the paid-capital secton of stockeholders' Equity at December 31, 2017.

DeLong Corporation was organized on January 1, 2017. It is authorized to issue 14,000 shares of 8%, $100 par value preferred stock, and 538,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.

Issued 2,000 shares of preferred stock for cash at $109 per share.

Jan. 10 Issued 75,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 5,050 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 24,000 shares of common stock for land. The asking price of the land was $92,000. The fair value of the land was $87,500. May 1 Issued 83,500 shares of common stock for cash at $4.50 per share. Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $38,000 for services performed in helping the company organize. Sept. 1 Issued 11,000 shares of common stock for cash at $7 per share. Nov. 1

Issued 2,000 shares of preferred stock for cash at $109 per share.

Explanation / Answer

Date Particulars Debit Credit 10-Jan Cash 300000           Common Stock- no par value 300000 Cash is received on 75000 shares at $ 4 per share , 75000 x 4, =300000 Full 300000 will be credited to Common stock, assumed to be typical no par value common stock 1-Mar Cash 555500           Preferred stock 505000            Additional paid in capital 50500 Cash is received on 5050 shares at 110 per share, i.e = 5050 x 110, =555500 Par Value = 100 per share , so amount credited to preferred stock is = 5050 x 100, =505000 Excess received over par value of 100 is additional paid in capital, i.e 5050 x 10, =50500 1-Apr Land 87500           Common Stock- no par value 87500 When stocks are issued for non cash consideration, either fair value of asset or common stock is taken, whichever available In this situation we are provided fair value of land = 87500 1-May Cash 375750           Common Stock- no par value 375750 Cash is received on 83500 shares at $ 4.5 per share , 83500 x 4.5, =375750 Full 375750 will be credited to Common stock, assumed to be typical no par value common stock 1-Aug Organisation cost 38000           Common Stock- no par value 38000 Since shares are issued to pay a cost associated with organisation of business, it will be recorded as organisation cost Full 38000 will be credited to Common stock, assumed to be typical no par value common stock 1-Sep Cash 77000           Common Stock- no par value 77000 Cash is received on 11000 shares at $ 7 per share , 11000 x 7, =77000 Full 77000 will be credited to Common stock, assumed to be typical no par value common stock 1-Nov Cash 218000           Preferred stock 200000            Additional paid in capital 18000 Cash is received on 2000 shares at 109 per share, i.e = 2000 x 109, = 218000 Par Value = 100 per share , so amount credited to preferred stock is = 2000 x 100, =200000 Excess received over par value of 100 is additional paid in capital, i.e 2000 x 9, =18000

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