Problem 11-1A (Part Level Submission) (a) Date Account Titles and Explanation De
ID: 2578503 • Letter: P
Question
Problem 11-1A (Part Level Submission)
(a)
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
SHOW SOLUTION
SHOW ANSWER
LINK TO TEXT
LINK TO TEXT
(b)
Preferred Stock
Paid-in Capital in Excess of Par Value—Preferred Stock
Common Stock
Paid-in Capital in Excess of Stated Value—Common Stock
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 Particulars Debit Credit 10-Jan Cash (74,000 x $6) $444,000 Common Stock (74,000 x $3) $222,000 Paid-in Capital in Excess of Stated Value - Common Stock (74,000 x $3) $222,000 (To record issue of common stock) 1-Mar Cash (1,280 x $54) $69,120 Preferred Stock (1,280 x $50) $64,000 Paid-in Capital in Excess of Par Value - Preferred Stock (1,280 x $4) $5,120 (To record issue of preferred stock) 1-May Cash (119,000 x $5) $595,000 Common Stock (119,000 x $3) $357,000 Paid-in Capital in Excess of Stated Value - Common Stock (119,000 x $2) $238,000 (To record issue of common stock) 1-Sep Cash (5,800 x $4) $23,200 Common Stock (5,800 x $3) $17,400 Paid-in Capital in Excess of Stated Value - Common Stock (5,800 x $1) $5,800 (To record issue of common stock) 1-Nov Cash (3,800 x $60) $228,000 Preferred Stock (3,800 x $50) $190,000 Paid-in Capital in Excess of Par Value - Preferred Stock (3,800 x $10) $38,000 (To record issue of preferred stock) Preferred Stock Particulars Debit Particulars Credit 1-Mar $64,000 1-Nov $190,000 31-Dec Bal. $254,000 Paid-in Capital in Excess of Par Value - Preferred Stock Particulars Debit Particulars Credit 1-Mar $5,120 1-Nov $38,000 31-Dec Bal. $43,120 Paid-in Capital in Excess of States Value - Common Stock Particulars Debit Particulars Credit 10-Jan $222,000 1-May $238,000 1-Sep $5,800 31-Dec Bal. $465,800 Common Stock Particulars Debit Particulars Credit 10-Jan $222,000 1-May $357,000 1-Sep $17,400 31-Dec Bal. $596,400