DeLong Corporation was organized on January 1, 2015. It is authorized to issue 1

Question

DeLong Corporation was organized on January 1, 2015. It is authorized to issue 11,700 shares of 8%, $100 par value preferred stock, and 491,400 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year.

1.) Journalize the transactions

2.)Prepare the paid-in capital section of stockholders’ equity at December 31, 2015

Jan. 10 Issued 84,200 shares of common stock for cash at $6 per share. Mar. 1 Issued 4,200 shares of preferred stock for cash at $107 per share. Apr. 1 Issued 23,300 shares of common stock for land. The asking price of the land was $88,100. The fair value of the land was $83,000. May 1 Issued 81,300 shares of common stock for cash at $4.63 per share. Aug. 1 Issued 11,900 shares of common stock to attorneys in payment of their bill of $39,500 for services performed in helping the company organize. Sept. 1 Issued 10,600 shares of common stock for cash at $6 per share. Nov. 1 Issued 2,820 shares of preferred stock for cash at $109 per share.

Explanation / Answer

1)

2)

Date Account Debit Credit 10-Jan Cash $505,200 common Stock $252,600 Paid in Capital in excess of par value - Common Stock $252,600 01-Mar Cash $449,400 Preffered Stock $420,000 Paid in Capital in excess of par value - Preferred Stock $29,400 01-Apr Land $83,000 common Stock $69,900 Paid in Capital in excess of par value - Common Stock $13,100 01-May Cash $376,419 common Stock $243,900 Paid in Capital in excess of par value - Common Stock $132,519 01-Aug Accounts Payable $39,500 common Stock $35,700 Paid in Capital in excess of par value - Common Stock $3,800 01-Sep Cash $63,600 common Stock $31,800 Paid in Capital in excess of par value - Common Stock $31,800 01-Nov Cash $307,380 Preffered Stock $282,000 Paid in Capital in excess of par value - Preferred Stock $25,380

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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