Question

Bramble Corporation was organized on January 1, 2020. It is authorized to issue 10,500 shares of 8%, $100 par value preferred stock, and 477,000 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 75,500 shares of common stock for cash at $4 per share.
Mar.	1		Issued 5,650 shares of preferred stock for cash at $105 per share.
Apr.	1		Issued 25,000 shares of common stock for land. The asking price of the land was $86,500. The fair value of the land was $83,000.
May	1		Issued 84,500 shares of common stock for cash at $4.25 per share.
Aug.	1		Issued 11,000 shares of common stock to attorneys in payment of their bill of $41,000 for services performed in helping the company organize.
Sept.	1		Issued 10,000 shares of common stock for cash at $6 per share.
Nov.	1		Issued 2,500 shares of preferred stock for cash at $111 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.)

b. Post to the stockholders’ equity accounts. (Post entries in the order of journal entries presented in the previous part.)

c. Prepare the paid-in capital section of stockholders’ equity at December 31, 2020. (Enter the account name only and do not provide the descriptive information provided in the question.)

Answer 1

Bramble Corporation
Journal entries
Date	Account	Debit	Credit	Calculation
10-Jan	Cash	$ 302,000		=75,500*4
	Common Stock		$   151,000	=75,500*2
	Paid in Capital in Excess of Stated Value-Common Stock		$   151,000
1-Mar	Cash	$ 593,250		=5,650*105
	Preferred Stock		$   565,000	=5,650*100
	Paid in Capital in Excess of Par-Preferred Stock		$     28,250
1-Apr	Land	$    83,000
	Common Stock		$     50,000	=25,000*2
	Paid in Capital in Excess of Stated Value-Common Stock		$     33,000
1-May	Cash	$ 359,125		=84,500*4.25
	Common Stock		$   169,000	=84,500*2
	Paid in Capital in Excess of Stated Value-Common Stock		$   190,125
1-Aug	Organization expenses	$    41,000
	Common Stock		$     22,000	=11,000*2
	Paid in Capital in Excess of Stated Value-Common Stock		$     19,000
1-Sep	Cash	$    60,000		=10,000*6
	Common Stock		$     20,000	=10,000*2
	Paid in Capital in Excess of Stated Value-Common Stock		$     40,000
1-Nov	Cash	$ 277,500		=2,500*111
	Preferred Stock		$   250,000	=2,500*100
	Paid in Capital in Excess of Par-Preferred Stock		$     27,500

Date Bramble Corporation T Accounts Date Debit Date Credit Preferred Stock 1-Mar $ 565,000 1-Nov $ 250,000 Debit Date Credit Common Stock 10-Jan $ 151,000 1-Apr $ 50,000 1-May $ 169,000 1-Aug $ 22,000 1-Sep $ 20,000 Bal. Bal. $ 815,000 Paid in Capital in Excess of Par-Preferred St 1-Mar $ 28,250 1-Nov $ 27,500 $ 412,000 Paid in Capital in Excess of Stated Value-Comm 10-Jan $ 151,000 1-Apr $ 33,000 1-May $ 190,125 1-Aug $ 19,000 1-Sep $ 40,000 Bal $ 55,750 $ 433,125

Bramble Corporation
Balance Sheet Partial
As of December 31, 2020
Stockholders Equity
Capital Stock
Preferred Stock	815,000
Common Stock	412,000
Total Capital Stock		1,227,000
Additional Paid in capital
Paid in Capital in Excess of Par-Preferred Stock	55,750
Paid in Capital in Excess of Stated Value-Common Stock	433,125
Total Additional Paid in Capital		488,875
Total Stockholders Equity		1,715,875