Question

Part1)

Stockholders' Equity: Transactions and Balance Sheet Presentation Tunic Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred: Apr e d 83.000 shares of common stock at $15 cash per share 3 issued 5.000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $34.000 S e d 4000 shares of common stock in exchange for equipment with a fair market value of $51.000 20 issued 9,000 shares of preferred stock for cash at 555 per share. Required a. Prepare journal entries to record the above transactions General Journal Date Description Apron Debit Credit Paid in Capital in Excess of Par Value. Common Stock issued shares of common stock Common Stock issued common stock for organization costs Common Stock c on stock for equament Preferred Stock und shares of preferred stock

Part2)

Answer 1

General Journal
Date	Description	Debit	Credit
Apr 01	Cash (83000*$15)	$1245000
	Common Stock (83000*$5)		$415000
	Paid-in-capital in excess of par- Common Stock (1245000-415000)		$830000
	Issued shares of common stock
Apr 03	Organization cost	$34000
	Common Stock (5000*$5)		$25000
	Paid-in-capital in excess of par- Common Stock (34000-25000)		$9000
	Issued common stock for organization costs
Apr 08	Equipment	$51000
	Common Stock (4000*5)		$20000
	Paid-in-capital in excess of par- Common Stock (51000-20000)		$31000
	Issued common stock for equipment
Apr 20	Cash (9000*$55)	$495000
	Preferred Stock (9000*$50)		$450000
	Paid-in-capital in excess of par- Preferred Stock (495000-450000)		$45000
	Issued shares of preferred stock

b)

Stockholders' Equity
Paid in Capital
Preferred Stock	$450000
Common Stock	460000	$910000
Additional Paid-in-Capital
Paid-in-Capital in excess of par value- Preferred Stock	45000
Paid-in-Capital in excess of par value- Common Stock	870000	915000
Total Paid-in-Capital		1825000
Retained earnings		49000
Total Stockholders' Equity		$1874000

Common Stock= $415000+25000+20000= $460000

Paid-in-Capital in excess of par value- Common Stock= $830000+9000+31000= $870000