P11-1A DeLong Corporation was organized on January 1, 2019. It is authorized to
ID: 2581370 • Letter: P
Question
P11-1A
DeLong Corporation was organized on January 1, 2019. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 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 80,000 shares of common stock for cash at $4 per share.
Mar. 1 Issued 5,000 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 $90,000. The fair value of the land was $85,000.
May 1 Issued 80,000 shares of common stock for cash at $4.50 per share.
Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $30,000 for services performed in helping the company organize.
Sept. 1 Issued 10,000 shares of common stock for cash at $5 per share.
Nov. 1 Issued 1,000 shares of preferred stock for cash at $109 per share.
Instructions
(a) Journalize the transactions.
(b) Post to the stockholders' equity accounts. (Use T-accounts.)
(c) Prepare the paid-in capital section of stockholders' equity at December 31, 2019.
Total paid-in capital $1,479,000
Chrome File Edit View History Bookmarks People Window Help . 41% CO Mon 7:22 PM e, a N Netflix Jane The Virgin Video xO Files Draitzelxx's Xbox cl x WileyPLUS x- e The Following Are Selex Rachel x X Secure l https://edugenwileyplus.com/edugen/student/mainfr.un. WileyPLUS Weygandt, Financial Accounting, 10e FINANCIAL ACCT. (ACCT298) Home Read, Study & Practice Assignment Gradebook ORION Downloadable eTextbook Read Study & PracticeChapter 11. Corporations: Organization, Stoch Select a Section Select a Study Objective FULL SCREEN PRINTER VERSION BACK NEXT Journalize stock transactions, post, and prepare paid-in capital section (LO 2, 4) DeLong Corporation was organized on January 1, 2019, It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares o the first year. CHAPTER RESOURCES ORION: Build your Proficien f no-par common stock with a stated value of S2 per share. The following stock transactions were comple leted during End of Chapter Homework Material Jan. Mar. 10 1 Issued 80,000 shares of common stock for cash at $4 per share. Issued 5,000 shares of preferred stock for cash at $105 per share Issued 24,000 shares of common stock for land. The asking price of the land was S90,000. The fair value of the Problems: Set A Apr.1land was S85,000 May Issued 80,000 shares of common stock for cash at $4.50 per share. Aug. Revi Thinking Issued 10,000 shares of common stock to attorneys in payment of their bill of S30,000 for services performed in helping the company organize. Solution Walkthrough Videos Applied Skills Video Excel Vid Sept Issued 10,000 shares of common stock for cash at S5 per share. 1 Issued 1,000 shares of preferred stock for cash at $109 per share Flashcards & Games Instructions (a) Journalize the transactions. (b) Post to the stockholders' equity accounts. (Use T-accounts.) (c) Prepare the paid-in capital section of stockholders' equity at December 31,2019 COURSE RESOURCES All Rights Reserved. A Division of John Wiley & Sons, Inc. Version 4.24.2.4 27Explanation / Answer
a) Date Account titles Debit Credit 10-Jan Cash (80000*4) 320000 Common stock (80000*2) 160000 Paid in capital in excess of par-common stock (80000*2) 160000 (Issued common stock for cash) 1-Mar Cash (5000*105) 525000 Preferred stock (5000*100) 500000 Paid in capital in excess of par-preferred stock (5000*5) 25000 (Issued preferred stock for cash) 1-Apr Land (At fair value) 85000 Common stock (24000*2) 48000 Paid in capital in excess of par-common stock (Balance) 37000 (Issued common stock for land) 1-May Cash (80000*4.5) 360000 Common stock (80000*2) 160000 Paid in capital in excess of par-common stock (80000*2.5) 200000 (Issued common stock for cash) 1-Aug Organizational expense 30000 Common stock (10000*2) 20000 Paid in capital in excess of par-common stock (Balance) 10000 (Issued common stock to attorneys ) 1-Sep Cash (10000*5) 50000 Common stock (10000*2) 20000 Paid in capital in excess of par-common stock (10000*3) 30000 (Issued common stock for cash) 1-Nov Cash (1000*109) 109000 Preferred stock (1000*100) 100000 Paid in capital in excess of par-preferred stock (1000*9) 9000 (Issued preferred stock for cash) b) Common stock Date Debit Date Credit Balance 408000 10-Jan Cash 160000 1-Apr Land 48000 1-May Cash 160000 1-Aug Organisational expense 20000 1-Sep Cash 20000 408000 408000 Paid in capital in excess of par-common stock Date Debit Date Credit Balance 437000 10-Jan Cash 160000 1-Apr Land 37000 1-May Cash 200000 1-Aug Organisational expense 10000 1-Sep Cash 30000 437000 437000 Preferred stock Date Debit Date Credit Balance 600000 1-Mar Cash 500000 1-Nov Cash 100000 600000 600000 Paid in capital in excess of par-preferred stock Date Debit Date Credit Balance 34000 1-Mar Cash 25000 1-Nov Cash 9000 34000 34000 c) Stockholder's equity Paid in capital Common stock $2 par vale,500000 shares authorised,,204000 shares issued (204000*2) 408000 Preferred stock $100 par value,10000 shares authorised,6000 shares issued (6000*100) 600000 Total capital stock 1008000 Paid in cpital in excess of par Common stock 437000 Preferred stock 34000 471000 Total paid in capital 1479000
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