Problem 11-1A Bramble Corp. was organized on January 1, 2019. It is authorized t
ID: 2582916 • Letter: P
Question
Problem 11-1A Bramble Corp. was organized on January 1, 2019. It is authorized to issue 13,000 shares of 8%, $100 par value preferred stock, and 526,000 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 84,500 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,150 shares of preferred stock for cash at $105 per share. Apr. 1 Issued 24,000 shares of common stock for land. The asking price of the land was $91,000. The fair value of the land was $80,500 May 1 Issued 83,500 shares of common stock for cash at $4.75 per share. Aug. 1 Issued 11,000 shares of common stock to attorneys in payment of their bill of $38,500 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 2,000 shares of preferred stock for cash at $109 per share. 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.)Explanation / Answer
Date Accounts Title and Explanation Debit Credit Jan.10 Cash (84,500 shares X $6 market price/share) $507,000 Common Stock (84,500 shares X $3 stated value/share) $253,500 APIC Common Stock $253,500 Mar.1 Cash (5,150 shares x $105 market/share) $540,750 Preferred Stock (5,150 shares X $100 par value/share) $515,000 APIC Preferred Stock $25,750 Apr.1 Land (at fair value) $80,500 Common Stock (24,000 shares X $3 stated value/share) $72,000 APIC Common Stock $8,500 May.1 Cash (83,500 shares X $4.75 market price/share) $396,625 Common Stock (83,500 shares X $3 stated value/share) $250,500 APIC Common Stock $146,125 Aug. 1 Organizational Expense $38,500 Common Stock (11,000 shares X $3 stated value/share) $33,000 APIC Common Stock $5,500 Sept.1 Cash (12000 shares X $7 market price/share) $84,000 Common Stock (12000 shares X $3 stated value/share) $36,000 APIC Common Stock $48,000 Nov.1 Cash (2000 shares x $109 market/share) $218,000 Preferred Stock (2000 shares X $100 par value/share) $200,000 APIC Preferred Stock $18,000