Question

Swifty Corporation was organized on January 1, 2022. It is authorized to issue 19,700 shares of 7%, $52 par value preferred stock and 471,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 65,100 shares of common stock for cash at $4 per share. Mar. 1 Issued 1,155 shares of preferred stock for cash at $56 per share. May 1 Issued 120,500 shares of common stock for cash at $6 per share. Sept. 1 Issued 6,100 shares of common stock for cash at $7 per share. Nov. 1 Issued 4,100 shares of preferred stock for cash at $54 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 o for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 10 : Cash Common Stock Paid-in Capital in Excess of Par Value-Common Stock Mar. 1 Cash Preferred Stock Paid-in Capital in Excess of Par Value-Common Stock May 1 Cash Common Stock paid

Answer 1

Date	Accounting title and explanation	Debit	Credit
Jan 10	Cash	260400
	Common stock		65100
	Paid-in-capital in excess of stated value - common stock		195300
Mar 1	Cash	64680
	7% Preferred stock		60060
	Paid-in-capital in excess of par value-preferred stock		4620
May 1	Cash	723000
	Common stock		120500
	Paid-in-capital in excess of stated value - common stock		602500
Sept 1	Cash	42700
	Common stock		6100
	Paid-in-capital in excess of stated value- common stock		36600
Nov 1	Cash	221400
	7% Preferred stock		213200
	Paid-in-capital in excess of par value- preferred stock		8200

Preferred stock ledger

			Mar 1	Cash	64680
			Nov 1	Cash	221400
			31 Dec		286080

Paid-in-capital in excess of par value- preferred stock ledger

			Mar 1	Cash	4620
			Nov 1	Cash	8200
			31 Dec		12820

Common stock ledger

			Jan 10	Cash	65100
			May 1	Cash	120500
			Sept 1	Cash	6100
			31 Dec		191700

Paid-in-capital in excess of stated value- common stock ledger

			Jan 10	Cash	195300
			May 1	Cash	602500
			Sept 1	Cash	36600
			31 Dec		834400

Swifty corporation

Partial balance sheet

31 December, 2022

Stockholders equity

Paid-in-capital

Capital stock
Preferred stock	$286080
Common stock	$191700
Total capital stock		$477780
Additional paid-in capital
Paid-in excess of par value- preferred stock	$12820
Paid-in excess of stated value- common stock	$834400
Total additional paid-in capital		$847220
Total paid-in capital		$1325000