Problem 13-1A DeLong Corporation was organized on January 1 2017. It is authoriz
ID: 341710 • Letter: P
Question
Problem 13-1A DeLong Corporation was organized on January 1 2017. It is authorized to issue is,000 shares of 8% $100 par value preferred stock, and S04 000 shares of no par common stock with a stated value of $2 per share. The stock transactions were completed during the first year Jan. 10 Issued 85,000 shares of common stock for cash at $4 per share Mar. 1 Issued 5,150 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 22,000 shares of common stock for land. The asking prike of the land was $90,000. The fair value of the land was $84,000. May I Issued 78,000 shares of common stock for cash at $5.25 per share. Aug. i Issued 11,000 shares of common stock to attorneys in payment of their bil of $43,000 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 1,000 shares of preferred stock for cash at $113 per share Journalize the transactions. (Record journal entries io the order presented in the problem. Credit account tities are automatically indented when amount is entered. Do not indent manualy.)
Explanation / Answer
Date Account titles & Explanations Debit Credit 10-Jan Cash (85000*4) 340000 Common stock (85000*2) 170000 paid in capital in excess of stated value-CS 170,000 1-Mar Cash (5,150*110) 566500 preferred stock (5150*100) 515000 paid in capital in excess of par-PS 51500 1-Apr land 84,000 Common stock (22000*2) 44000 paid in capital in excess of stated value-CS 40,000 1-May Cash (78000*5.25) 409500 Common stock (78000*2) 156000 paid in capital in excess of stated value-CS 253500 1-Aug Organizational expense 43,000 common stock (11000*2) 22,000 paid in capital in excess of stated value-CS 21,000 1-Sep Cash (12000*7) 84000 common stock (12000*2) 24000 paid in capital in excess of stated value-CS 60000 1-Nov Cash (1000*113) 113000 preferred stock (1000*100) 100000 paid in capital in excess of par -PS 13000 Preferred stock Date Explaination Ref Debit Credit Balance 1-Mar 515,000 515,000 1-Nov 100,000 615,000 common stock Date Explaination Ref Debit Credit Balance 10-Jan 170,000 170,000 1-Apr 44,000 214,000 1-May 156000 370,000 1-Aug 22,000 392,000 1-Sep 24000 416,000 paid in capital in excess of par -Preferred stock Date Explaination Ref Debit Credit Balance 1-Mar 51,500 51,500 1-Nov 13,000 64,500 paid in capital in excess of stated value-common stock Date Explaination Ref Debit Credit Balance 10-Jan 170,000 170,000 1-Apr 40,000 210,000 1-May 253500 463,500 1-Aug 21,000 484,500 1-Sep 60000 544,500 Balance sheet (partial) As on dec 31,2017 paid in capital Capital stock preferred stock 615,000 common stock 416,000 total capital stock 1,031,000 Addittional paid in capital paid in capital in excess of par -PS 64,500 paid in capital in excess of stated value-CS 544,500 total addittional paid in capital 609,000 total paid in capital 1,640,000