Question

Pronghorn Corp. was organized on January 1, 2022. It is authorized to issue 19,800 shares of 7%, $50 par value preferred stock and 462,000 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 71,000 shares of common stock for cash at $5 per share.
Mar. 1 Issued 1,220 shares of preferred stock for cash at $56 per share.
May 1 Issued 116,000 shares of common stock for cash at $8 per share.
Sept. 1 Issued 5,200 shares of common stock for cash at $6 per share.
Nov. 1 Issued 3,200 shares of preferred stock for cash at $58 per share.

Journalize the transactions.

Post to the stockholders’ equity accounts.

Answer 1

Account Titles & Explanation Debit Credit Answer a Date (71,000 shares x $5 Cash $355,000 Jan. 10 Common Stock (71,000 shares x $1) $71,000 Paid-in Capital in Excess of Stated Value Common Stock $284,000 [71,000 shares x ($5 - $1)] (To record the Issue of common stock) Cash Mar. 1 (1,220 shares x $56) $68,320 Preferred Stock (1,220 shares x $50) $61,000 Paid-in Capital in Excess of Par Value Preferred Stock $7,320 1,220 shares x ($56 - $50)] (To record the Issue of preferred stock) Cash (116,000 shares x $8) $928,000 May. 1 Common Stock (116,000 shares x $1) $116,000 Paid-in Capital in Excess of Stated Value Common Stock $812,000 [116,000 shares x ($8 - $1)] (To record the Issue of common stock) Sept. 1 Cash (5,200 shares x $6) $31,200 Common Stock (5,200 shares x $1) $5,200 Paid-in Capital in Excess of Stated Value Common Stock $26,000 5,200 shares x ($6 - $1)] (To record the Issue of common stock) Cash (3,200 shares x $58) $185,600 Nov. 1 Preferred Stock (3,200 shares x $50) $160,000 Paid-in Capital in Excess of Par Value Preferred Stock $25,600 [3,200 shares x ($58 - $50)] (To record the Issue of preferred stock)

Preferred Stock Paid-in Capital in Excess of Par Value Preferred Stock Mar. 1 $61,000 Mar. 1 $7,320 Nov. 1 $160,000 $21,000 Nov. 1 $25,600 Dec. 31 Dec. 31 Bal Bal $32,920 Common Stock Paid-in Capital in Excess of Stated Value Common Stock Jan. 10 Jan. 10 $71,000 $284,000 May. 1 Sept. 1 May. 1 Sept. 1 $116,000 $812,000 $5,200 $26,000 Bal $192,200 Dec. 31 Bal $1,122,000 Dec. 31