Problem 11-1A Journalize the transactions. (Record journal entries in the order
ID: 2520138 • Letter: P
Question
Problem 11-1A
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 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Post to the stockholders’ equity accounts. (Post entries in the order of journal entries presented in the previous part.)
Preferred Stock
Date
Explanation
Ref.
Debit
Credit
Balance
J5
J5
Common Stock
Date
Explanation
Ref.
Debit
Credit
Balance
J5
J5
J5
J5
J5
Paid-in Capital in Excess of Par-Preferred Stock
Date
Explanation
Ref.
Debit
Credit
Balance
J5
J5
Paid-in Capital in Excess of Stated Value-Common Stock
Date
Explanation
Ref.
Debit
Credit
Balance
J5
J5
J5
J5
J5
Prepare the paid-in capital section of stockholders’ equity at December 31, 2017. (Enter the account name only and do not provide the descriptive information provided in the question.)
DELONG CORPORATION
Balance Sheet (Partial)
Problem 11-1A
DeLong Corporation was organized on January 1, 2017. It is authorized to issue 12,000 shares of 8%, $100 par value preferred stock, and 462,000 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 77,000 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,500 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 25,000 shares of common stock for land. The asking price of the land was $88,000. The fair value of the land was $84,000. May 1 Issued 76,500 shares of common stock for cash at $5.25 per share. Aug. 1 Issued 12,000 shares of common stock to attorneys in payment of their bill of $44,000 for services performed in helping the company organize. Sept. 1 Issued 12,000 shares of common stock for cash at $7 per share. Nov. 1 Issued 3,000 shares of preferred stock for cash at $112 per share.
Explanation / Answer
Journal Entries Date Account Title and explanation Debit Credit Jan,10 Cash (77,000 Shares X $ 6) $ 4,62,000 To Common Stock (77,000 Shares X $ 3) $ 2,31,000 To Excess paid in capital - Common Shares $ 2,31,000 (To Record the issue of common shares) Mar, 01 Cash (5,500 Shares X $ 110) $ 6,05,000 To Preferred shares Capital (5,500 Shares X $ 100) $ 5,50,000 To Excess paid in capital - Preferred Share Capital $ 55,000 (To Record the issue of the Preferred shares) Apr, 01 Land $ 84,000 To Common Stock (25,000 Shares X $ 3) $ 75,000 To Excess paid in capital - Common Shares $ 9,000 (To Record the issue of the shares against land) Cash (76,500 Shares X $ 5.25) $ 4,01,625 May, 01 To Common Stock (76,500 Shares X $ 3) $ 2,29,500 To Excess paid in capital - Common Shares $ 1,72,125 (To Record the issue of common shares) Account Payable $ 44,000 Aug, 01 To Common Stock (12,000 Shares X $ 3) $ 36,000 To Excess paid in capital - Common Shares $ 8,000 (To Record the issue of the shares against land) Cash (12,000 Shares X $ 7) $ 84,000 Sept , 01 To Common Stock (12,000 Shares X $ 3) $ 36,000 To Excess paid in capital - Common Shares $ 48,000 (To Record the issue of common shares) Cash (3,000 Shares X $ 112) $ 3,36,000 Nov, 01 To Preferred shares Capital (3,000 Shares X $ 100) $ 3,00,000 To Excess paid in capital - Preferred Share Capital $ 36,000 (To Record the issue of the Preferred shares)