Problem 13-1A (Part Level Submission) (a) Date Account Titles and Explanation De
ID: 2481650 • Letter: P
Question
Problem 13-1A (Part Level Submission)
(a)
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
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Problem 13-1A (Part Level Submission)
DeLong Corporation was organized on January 1, 2017. It is authorized to issue 12,500 shares of 8%, $100 par value preferred stock, and 477,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.Jan. 10 Issued 80,500 shares of common stock for cash at $4 per share. Mar. 1 Issued 4,550 shares of preferred stock for cash at $105 per share. Apr. 1 Issued 24,500 shares of common stock for land. The asking price of the land was $92,500. The fair value of the land was $85,000. May 1 Issued 80,000 shares of common stock for cash at $5.00 per share. Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $44,500 for services performed in helping the company organize. Sept. 1 Issued 11,500 shares of common stock for cash at $7 per share. Nov. 1 Issued 2,500 shares of preferred stock for cash at $114 per share.
Explanation / Answer
Date
Account Titles and Explanation
Debit
Credit
Jan 10
Cash A/c Dr.
$322,000
To Common Stock A/c
$161,000
To Capital in excess of par Value A/c
$161,000
(Issued 80,500 common stock of $2 par value at $4 per share)
Mar 1
Cash A/c Dr.
$477,750
To 8% Preferred Stock A/c
$455,000
To Preferred Stock premium A/c
$ 22,750
(Issued 4550 8% preferred stock of $100 par value at $105 per share)
Apr 1
Land A/c Dr.
$ 85,000
To common stock A/c
$ 49,000
To Capital in excess of par Value A/c
$ 36,000
(Issued 24,500 common stock of $2 par value and received land having FMV of $85,000)
May 1
Cash A/c Dr.
$400,000
To Common Stock A/c
$160,000
To Capital in excess of par Value A/c
$240,000
(Issued 80,000 common stock of $2 par value at $5 per share)
Aug 1
Attorney Fees A/c Dr.
$44,500
To common stock A/c
$ 20,000
To Capital in excess of par Value A/c
$ 24,500
(Issued 10,000 common stock of $2 par value to pay the attorney fees bill )
Sep 1
Cash A/c Dr.
$ 80,500
To Common Stock A/c
$ 23,000
To Capital in excess of par Value A/c
$ 57,500
(Issued 11,500 common stock of $2 par value at $7 per share)
Nov 1
Cash A/c Dr.
$285,000
To 8% Preferred Stock A/c
$250,000
To Preferred Stock premium A/c
$ 35,000
(Issued 2,500 8% preferred stock of $100 par value at $114 per share)
Date
Account Titles and Explanation
Debit
Credit
Jan 10
Cash A/c Dr.
$322,000
To Common Stock A/c
$161,000
To Capital in excess of par Value A/c
$161,000
(Issued 80,500 common stock of $2 par value at $4 per share)
Mar 1
Cash A/c Dr.
$477,750
To 8% Preferred Stock A/c
$455,000
To Preferred Stock premium A/c
$ 22,750
(Issued 4550 8% preferred stock of $100 par value at $105 per share)
Apr 1
Land A/c Dr.
$ 85,000
To common stock A/c
$ 49,000
To Capital in excess of par Value A/c
$ 36,000
(Issued 24,500 common stock of $2 par value and received land having FMV of $85,000)
May 1
Cash A/c Dr.
$400,000
To Common Stock A/c
$160,000
To Capital in excess of par Value A/c
$240,000
(Issued 80,000 common stock of $2 par value at $5 per share)
Aug 1
Attorney Fees A/c Dr.
$44,500
To common stock A/c
$ 20,000
To Capital in excess of par Value A/c
$ 24,500
(Issued 10,000 common stock of $2 par value to pay the attorney fees bill )
Sep 1
Cash A/c Dr.
$ 80,500
To Common Stock A/c
$ 23,000
To Capital in excess of par Value A/c
$ 57,500
(Issued 11,500 common stock of $2 par value at $7 per share)
Nov 1
Cash A/c Dr.
$285,000
To 8% Preferred Stock A/c
$250,000
To Preferred Stock premium A/c
$ 35,000
(Issued 2,500 8% preferred stock of $100 par value at $114 per share)