Problem 13-1A DeLong Corpoartion was organized on JAnuary 1, 2014. It is authori
ID: 2445724 • Letter: P
Question
Problem 13-1A
DeLong Corpoartion was organized on JAnuary 1, 2014. It is authorized to issue 10,300 shares of 8%, $100 par value preferred stock, and 475,700 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 78,600 shares stock for cash at $4 per share.
Mar. 1 Issued 5,100 shares of preferred stock for cash at $109 per share.
Apr. 1 Issued 23,100 shares of common stock for land. The asking price of the land was $85,600. The fair value of the land was $80,900.
May. 1 Issued 82,400 Shares of common stock for cash at $4.84 per share.
Aug. 1 Issued 11,200 shares of common stock to attorneys in payment of their bill of $42,700 for services performed in helping the company organize.
Sept. 1 Issued 10,400 shares of common stock for cash at $6 per share.
Nov. 1 Issued 1,610 shares of preferred stock for cash at $112 per share.
a. Journalize the transactions.
b. Post to the stockholders' equity accounts.
c. Prepare the Paid-in capital section of stockholders' equity at December 31, 2014 (Balance Sheet (Partial)
Explanation / Answer
Amount (in $) Date Particulars Debit Credit 10.01.2014 Cash 314400 Common Stock 157200 Paid-In Capital in Excess of Par, Common Stock 157200 01.03.2014 Cash 555900 Preferred Stock 510000 Paid-In Capital in Excess of Par, Preferred Stock 45900 01.04.2014 Land 80900 Common Stock 46200 Paid-In Capital in Excess of Par, Common Stock 34700 01.05.2014 Cash 398816 Common Stock 164800 Paid-In Capital in Excess of Par, Common Stock 234016 01.08.2014 Organisation expense 42700 Common Stock 22400 Paid-In Capital in Excess of Par, Common Stock 20300 01.09.2014 Cash 62400 Common Stock 20800 Paid-In Capital in Excess of Par, Common Stock 41600 01.11.2014 Cash 180320 Preferred Stock 161000 Paid-In Capital in Excess of Par, Preferred Stock 19320 Stockholders' Equity Accounts Amount (in $) Common Stock 411400.00 Paid-In Capital in Excess of Par, Common Stock 487816.00 Preferred Stock 671000.00 Paid-In Capital in Excess of Par, Preferred Stock 65220.00 Total Stockholders' Equity 1635436.00 Paid-in capital section of stockholders' equity at December 31, 2014 Amount (in $) Common Stock authorized to issue 475,700 shares of no-par common stock with a stated value of $2 per share, issued 205,700 shares paid up capital and outstanding 411400.00 Paid-In Capital in Excess of Par, Common Stock 487816.00 Preferred Stock authorized to issue 10,300 shares of 8%, $100 par value preferred stock, issued 6,710 shares paid up capital and outstanding 671000.00 Paid-In Capital in Excess of Par, Preferred Stock 65220.00 Total Paid up Capital 1635436.00