Problem 13-1A DeLong Corporation was organized on January 1, 2017. It is authori
ID: 2566612 • Letter: P
Question
Problem 13-1A DeLong Corporation was organized on January 1, 2017. It is authorized to issue 11,000 shares or 8% $100 par value preferred stock and 524,000 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 83,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 4,600 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 23,000 shares of common stock for land. The asking price of the land was $89,500. The fair value of the land was $86,000 May 1 Issued 81,000 shares of common stock for cash at $5.00 per share. Aug. 1 Issued 10,500 shares of common stock to attorneys in payment of their bill of $42,000 for services performed in helping the company organize Sept. 1 Issued 10,500 shares of common stock for cash at $5 per share. Nov. 1 Issued 3,000 shares of preferred stock for cash at $112 per share.Explanation / Answer
Journal Entries :-
Preferred Stock :-
Common Stock :-
Paid In Capital Excess of stated value- Preferred Stock :-
Common Stock :-
Balance Sheet ;-
Date Particulars Debit ($) Credit ($) 10 Jan Cash A/c Dr. (83000 * $4) 332000 To Common stock 166000 To Paid in capital in excess of stated value 166000 1 Mar. Cash A/c Dr. (4600 * $110) 506000 To Preferred stock (4600 * $100) 460000 To Paid in Capital in Excess of par (4600 * $10) 46000 1 Apr. Land A/c Dr. 86000 To Common Stock (23000 * 2) 46000 To Paid in Capital in excess of stated value 40000 1 May Cash A/c Dr. (81000*$5) 405000 To Common stock 162000 To Paid in Capital in excess of stated value 243000 1 Aug Organizational Expenses 42000 To Common Stock (10500 * 2) 21000 To Paid in Capital in Excess of stated value 21000 1 Sep. Cash A/c Dr. (10500 * 5) 52500 To Common stock (10500 * 2) 21000 To Paid in Capital in excess of stated value 31500 1 Nov Cash A/c Dr. (3000 * 112) 336000 To Preferred Stock(3000*100) 300000 To Paid in Capital in excess of par 36000