Question

Bramble Corporation was organized on January 1, 2020. It is authorized to Issue 11,000 shares of 8%, $100 par value preferred stock, and 524,000 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 83,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 4,600 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 23,000 shares of common stock for land. The asking price of the land was $89,500. The fair value of the land was $86,000. May 1 Issued 81,000 shares of common stock for cash at $5.00 per share. Aug. 1 Issued 10,500 shares of common stock to attorneys in payment of their bill of $42,000 for services performed in helping the company organize. Sept. 1 Issued 10,500 shares of common stock for cash at $5 per share. Nov. 1 Issued 3,000 shares of preferred stock for cash at $112 per share.

Answer 1

DATE	ACCOUNT TITLE	DEBIT	CREDIT
JAN10	Cash (83000*4)	332000
	common stock (83000*2)		166000
	paid in capital in excess of stated value -common stock		166000
MAR 1	Cash (4600*110)	506000
	Preferred stock (4600*100)		460000
	Paid in capital in excess of par value -preferred stock		46000
APR 1	Land	89500
	common stock (23000*2)		46000
	paid in capital in excess of stated value -common stock		43500
MAY 1	Cash (81000*5)	405000
	common stock (81000*2)		162000
	paid in capital in excess of stated value -common stock		243000
AUG 1	Organization expense	42000
	common stock (10500*2)		21000
	paid in capital in excess of stated value -common stock		21000
SEPT 1	Cash (10500*5)	52500
	common stock (10500*2)		21000
	paid in capital in excess of stated value -common stock		31500
NOV 1	Cash (3000*112)	336000
	Preferred stock (3000*100)		300000
	Paid in capital in excess of par value -preferred stock		36000