Problem 13-1A (Part level Submission) DeLong Corporation wes organized on Januar
ID: 2564858 • Letter: P
Question
Problem 13-1A (Part level Submission) DeLong Corporation wes organized on January 1 2014 t s author zed to issue 12 700 shares o#3% S100 par a ue pre erred stoc c, and 546,200 share s of no-par common stock w th stated va e o 52 per share he rolo ng stock trans5ctions were completed during the first year. pland wfor sensices May Isu2.es of stoc May 1 Issued 78,500 shares of common stock for cash at $4.33 per share an, 10 1ssued 76,300 shares of common stock for cash at $4 per share. Mar 1 Issued 5,400 shares of preferred stock for cash at $110 per share pr 1 Issued 22,800 shares cf common stock for land. The asking price of the land was $90,000. The fair value of the land was $89, 100. Aug. 1 1ssued 10,200 shares of common stock to attormeys in payment of their bill of $43,300 for services performed in helping the company organize. Sept. 1 Issued 10,100 shares cf common stack for cash at $7 per share Nov, 1 Issued 2,270 shares of preferred stock for cash at $115 per share. shares of premmon atock to sttormey i.53 for cash st s7 Fershaof their bill of (a) Journalize the transactions. (Credit account titles are automatically indented hen amount is entered. Do not indent manually.) Date Account Titles and Explanation Credil Mar. 1 Apr. 1 Aug. 1 Now. 1 ahoo Air Force failed to registe domestict violence convik database, a move that coExplanation / Answer
Date Account titles Debit Credit Jan 10 Cash (76,300 x 4) 305,200 Common Stock (76,300 x 2) 152,600 Additional paid-in capital - Common stock (76,300 x 2) 152,600 (To issue 76,300 shares of common stock at $4 per share, par value $2.) Mar 1 Cash (5,400 x 110) 594,000 Preferred Stock (5,400 x 100) 540,000 Additional paid-in capital - Preferred stock (5,400 x 10) 54,000 (To issue 5400 shares of preferred stock at $110, $100 par value) Apr 1 Land 89,100 Common stock (22,800 x 2) 45,600 Additional paid-in capital-Common stock (89,100 - 45,600) 43,500 (To issue 22800 shares of common stock ($2 par value) for purchase of land with fair value of $89,100) May 1 Cash (78,500 x 4.33) 339,905 Common Stock (78,500 x 2) 157,000 Additional paid-in capital - Common stock (78,500 x 2.33) 182,905 (To issue 78,500 shares of common stock at $4.33 per share, par value $2.) Aug 1 Organization costs 43,300 Common stock (10,200 x 2) 20,400 Additional paid-in capital-Common stock (43,300 - 20,400) 22,900 (To issue 10,200 shares of common stock to settle attorney's invoice for organization costs) Sept 1 Cash (10,100 x 7) 70,700 Common Stock (10,100 x 2) 20,200 Additional paid-in capital - Common stock (10,100 x 5) 50,500 (To issue 10,100 shares of common stock at $7 per share, par value $2.) Nov 1 Cash (2,270 x 115) 261,050 Preferred Stock (2,270 x 100) 227,000 Additional paid-in capital - Preferred stock (2,270 x 15) 34,050 (To issue 2,270 shares of preferred stock at $115, $100 par value)