Problem 11-1A DeLong Corporation was organized on January 1, 2017. It is authori
ID: 2438276 • Letter: P
Question
Problem 11-1A DeLong Corporation was organized on January 1, 2017. It is authorized to issue 14,000 shares of 8%, $100 par value preferred stock, and 497,000 shares of no par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 79,500 shares of common stock for cash at $6 per share Mar. 1 Issued 5,200 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 $94,500. The fair value of the land was $83,500 May 1 Issued 79,500 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 $42,500 for services performed in helping the company organize. Sept. 1 Issued 10,000 shares of common stock for cash at $7 per share. Nov. 1 Issued 1,000 shares of preferred stock for cash at $109 per share. Journalize the transactions. (Record journal entries in the order presented in the problem. 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 O for the amounts.)Explanation / Answer
Answers
Date
Accounts title
Debit
Credit
Working
Jan-10
Cash
$ 477,000.00
79500 shares x $6
Common Stock
$ 238,500.00
79500 shares x $3 stated
Paid In Capital in excess of Stated Value - Common Stock
$ 238,500.00
79500 shares x $3
Mar-01
Cash
$ 572,000.00
5200 shares x $ 110
Preferred Stock
$ 520,000.00
5200 shares x $ 100 par
Paid In Capital in excess of Par Value - Preferred Stock
$ 52,000.00
5200 shares x $ 10
Apr-01
Land
$ 83,500.00
Fair Value
Common Stock
$ 72,000.00
24000 shares x $ 3 stated
Paid In Capital in excess of Stated Value - Common Stock
$ 11,500.00
83500 - 72000
May-01
Cash
$ 357,750.00
79500 shares x $ 4.5
Common Stock
$ 238,500.00
79500 shares x $ 3 stated
Paid In Capital in excess of Stated Value - Common Stock
$ 119,250.00
79500 shares x $ 1.5
Aug-01
Legal service expenses
$ 42,500.00
expense billed
Common Stock
$ 30,000.00
10000 shares x $3 stated
Paid In Capital in excess of Stated Value - Common Stock
$ 12,500.00
42500 - 30000
Sep-01
Cash
$ 70,000.00
10000 shares x $ 7
Common Stock
$ 30,000.00
10000 shares x $ 3 stated
Paid In Capital in excess of Stated Value - Common Stock
$ 40,000.00
10000 shares x $ 4
Nov-01
Cash
$ 109,000.00
1000 shares x $109
Preferred Stock
$ 100,000.00
1000 shares x $100 par
Paid In Capital in excess of Par Value - Preferred Stock
$ 9,000.00
1000 shares x $9
Preferred Stock
Date
Debit
Credit
Balance
Mar-01
$ 520,000.00
$ 520,000.00
Nov-01
$ 100,000.00
$ 620,000.00
Common Stock
Date
Debit
Credit
Balance
Jan-10
$ 238,500.00
$ 238,500.00
Apr-01
$ 72,000.00
$ 310,500.00
May-01
$ 238,500.00
$ 549,000.00
Aug-01
$ 30,000.00
$ 579,000.00
Sep-01
$ 30,000.00
$ 609,000.00
Paid in Capital in excess of Par - Preferred Stock
Date
Debit
Credit
Balance
Mar-01
$ 52,000.00
$ 52,000.00
Nov-01
$ 9,000.00
$ 61,000.00
Paid in Capital in excess of Stated Value - Common Stock
Date
Debit
Credit
Balance
Jan-10
$ 238,500.00
$ 238,500.00
Apr-01
$ 11,500.00
$ 250,000.00
May-01
$ 119,250.00
$ 369,250.00
Aug-01
$ 12,500.00
$ 381,750.00
Sep-01
$ 40,000.00
$ 421,750.00
Date
Accounts title
Debit
Credit
Working
Jan-10
Cash
$ 477,000.00
79500 shares x $6
Common Stock
$ 238,500.00
79500 shares x $3 stated
Paid In Capital in excess of Stated Value - Common Stock
$ 238,500.00
79500 shares x $3
Mar-01
Cash
$ 572,000.00
5200 shares x $ 110
Preferred Stock
$ 520,000.00
5200 shares x $ 100 par
Paid In Capital in excess of Par Value - Preferred Stock
$ 52,000.00
5200 shares x $ 10
Apr-01
Land
$ 83,500.00
Fair Value
Common Stock
$ 72,000.00
24000 shares x $ 3 stated
Paid In Capital in excess of Stated Value - Common Stock
$ 11,500.00
83500 - 72000
May-01
Cash
$ 357,750.00
79500 shares x $ 4.5
Common Stock
$ 238,500.00
79500 shares x $ 3 stated
Paid In Capital in excess of Stated Value - Common Stock
$ 119,250.00
79500 shares x $ 1.5
Aug-01
Legal service expenses
$ 42,500.00
expense billed
Common Stock
$ 30,000.00
10000 shares x $3 stated
Paid In Capital in excess of Stated Value - Common Stock
$ 12,500.00
42500 - 30000
Sep-01
Cash
$ 70,000.00
10000 shares x $ 7
Common Stock
$ 30,000.00
10000 shares x $ 3 stated
Paid In Capital in excess of Stated Value - Common Stock
$ 40,000.00
10000 shares x $ 4
Nov-01
Cash
$ 109,000.00
1000 shares x $109
Preferred Stock
$ 100,000.00
1000 shares x $100 par
Paid In Capital in excess of Par Value - Preferred Stock
$ 9,000.00
1000 shares x $9