Question

Pina Colada Corporation was organized on January 1, 2020. It is authorized to issue 12,000 shares of 8%, $100 par value preferred stock, and 512,000 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 79,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 5,850 shares of preferred stock for cash at $105 per share. Apr. 1 Issued 23,000 shares of common stock for land. The asking price of the land was $87,500. The fair value of the land was $88,000. May 1 Issued 81,000 shares of common stock for cash at $4.50 per share. Aug. 1 Issued 12,000 shares of common stock to attorneys in payment of their bill of $36,000 for services performed in helping the company organize. Sept. 1 Issued 12,000 shares of common stock for cash at $5 per share. Nov. 1 Issued 2,000 shares of preferred stock for cash at $108 per share

Answer 1

- Амося Page, No ① accouny Stockhodet mu Porcelcined stock Preferred stock $585000 Mar-ol Nov-ol $ 200,000 Balance $785000 Mar- l = 5850x $100 par = $585000 Nov- l = goooshares x $100 por = $200,000 Palid sospital con exces of our value - Preferred stack Paid in capital in excess of poor value - preferred stock Mar-ol $29250 $ 16000 Balance 545250 M001-01 = ( 5850x $105) – (5850 x $100 par) € 614250 - 585000 = $29250 Nov-ol

Pageino @ 000 x $108) - (2000xtinn Now – 01 = (2000 x $108) - (2000x$100) = 216000 - 200,000 = $ 16000 common stock Common stock Jan-10 $ 158000 $ 46000 € 162000 $24000 Sep-01 $24000 Balance $414000 Jan -10 = 19000 shares $2 per share = $ 158000 Apr-01 - 23000 shares * $ 2 =446000 May-01 3 81000 x $a = $ 162000 Aug-oi = 12000 x 62 = $24000 Sept -01 - 12000 x $2 = $24000

- Page No ③ Pated io capital â ce s of stated value -- commenstock Paid in capital in excess of stâled value - Common stock Jan - 10 $ 158000 April-ol $ 42000 May-oi $ 202500 Sep-01 $ 36000 Balance $ 438500 Jan 10 = (49000k $ 4 pen share) - ( 49000x+2) = 316000 – 158000 $ 158000 April { = 88000, - ( 23000 x 2) 88000 – 46000 = $ 42000 May-01 = (81000 x $4:50) - (81000x$ 23 364500 – 162000 = $ 202500 Sep-01 = (12000 x $5) - (12000 X $2) = 60,000 - 24000 = $36000

Page. No 4 dec 31, 2020 Paid in capital section of fockholder's quiting art w Amount Amount $ 485000 Particular Paid in capital Capital stock Preferred stock Common stock Total capital stock Additional paid is capital Paid in capital in excem of pou - Prelovreo $45050 $ 414000 $1199000 stock $438500 Paid in capital in excess of prot Value - Common stock $483750 Total additional paid in capital Total paid in capital $1682750