Question

Blue Spruce Corporation was organized on January 1, 2020. It is authorized to issue 12,000 shares of 8%, $100 par value preferred stock, and 462,000 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 77,000 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,500 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 25,000 shares of common stock for land. The asking price of the land was $88,000. The fair value of the land was $84,000. May 1 Issued 76,500 shares of common stock for cash at $5.25 per share. Aug. 1 Issued 12,000 shares of common stock to attorneys in payment of their bill of $44,000 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 3,000 shares of preferred stock for cash at $112 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.)

Post to the stockholders’ equity accounts. (Post entries in the order of journal entries presented in the previous part.) Preferred Stock Common Stock Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock

Prepare the paid-in capital section of stockholders’ equity at December 31, 2020. (Enter the account name only and do not provide the descriptive information provided in the question.)

Answer 1

| Credit Journal Entores Date Titles Debet 2020 Jan 10 Cash 01700x46) $462,000 70 Common stock 90 Paid on-Capital in Lucess of slated Vol (4462,000 - $23,00 (To record issue of common stock) %23), 000) B 231,000 $ 550,000 Mart | Cash (5,500x110) $605,00 To Preferred Stock To Paid-in-copital in Lucess of por - Preferred stock (5605000-550,000) Cho necord issue of preleaved stock) $55,000 Apo I $ 84,000 $ 75,000 $ 9000 Land To common stock (25,000 x $3) TO Paid an-Capital in Eucess of slaled Valve Common shout C$814,000 - 75,000 (To he cord issue common shock for land) Cash (76,500 x $5.26 To Common stock To Paid. in capital an Excess! of stated Valve Common Gro niecord issue of common show) May I $401,625 $229,500 $172, 125

Debit Credit Date $44,000 ugl $36,000 $8000 sept $84,000 Titles Altoney bill To Common stock To Paid sn. Capital in Eucess of stated Value - Common stock (To record issue of common stock to pay attorney bill) Comonimo Cash To Common stock TO Paid in-capital in Greass of stated Value - Common stock (o record the issue of common stock) Cash TO Preferred stock To Paid in capital. In Eucess of Par - Preferred stock. (To record the issue of preferred stack $36,000 $18,000 $336,000 Novi $300,000 $ 36,000 Preferred stock Cash $550,000 $300,000 Cash closing balance $850,000 $859000

$231,000 75000 229,500 36000 36,000 Common stock Cash Land Cash Андоноty }} Cash closing balance $607,500 $ 607,500 Paid-in - Capital in Encess of Par-Preferred stock Cash Cash Closing balance. $96000 391,000+ 607,500 $55,000 $36000 $9,000 $239,000 9.000 Paid.in - Capital in Eucess of stated Value - Common stock Cash Land Cash Attorney bill Cash closing balance |$468, 125 $468,125 172,125 8,600 48,000 $468,125

Blue Spruce Corporation shock holder's Equity Common stock Autorized to issudule,oou shares of & per share issued 202,500 Poedmana copila) in Eucess of stated Valere - Camon $607,500 $468, 125 stock Preferred stock Authorized - 12,000 shares of $100 par issued - 8,500 shares $850,000 Paid.in- Capital in Encess of par-Preferred stock | $91,000 ST