Problem 11-1A (Part Level Submission) (a) Date Account Titles and Explanation De
ID: 2578455 • Letter: P
Question
Problem 11-1A (Part Level Submission)
(a)
Date
Account Titles and Explanation
Debit
Credit
Problem 11-1A (Part Level Submission)
Culver Corporation was organized on January 1, 2017. It is authorized to issue 22,800 shares of 6%, $50 par value preferred stock and 468,000 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 74,000 shares of common stock for cash at $6 per share. Mar. 1 Issued 1,280 shares of preferred stock for cash at $54 per share. May 1 Issued 119,000 shares of common stock for cash at $5 per share. Sept. 1 Issued 5,800 shares of common stock for cash at $4 per share. Nov. 1 Issued 3,800 shares of preferred stock for cash at $60 per share.
Explanation / Answer
Date Accounts Title & explanation Debit Credit 10-Jan Cash $444,000 Common Stock (74,000 x $3) $222,000 Paid in capital in Excess of stated value- common stock $222,000 1-Mar Cash $69,120 Common Stock (1,280 x $50) $64,000 Paid in capital in excess of stated value- preferred stock $5,120 1-May Cash $595,000 Common Stock (119,000 x $3) $357,000 Paid in capital in Excess of stated value- common stock $238,000 1-Sep Cash $23,200 Common Stock (5,800 x $3) $17,400 Paid in capital in excess of stated value- common stock $5,800 1-Nov Cash $228,000 Common Stock (3,800 x $50) $190,000 Paid in capital in excess of stated value- preferred stock $38,000