Question

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. 1 Issued 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. 8 Issued 4,000 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 $55 per share. Required a. Prepare journal entries to record the above transactions. General Journal Description Debit Credit Date Apr.01 Paid-in-Capital in Excess of Par Value - Common Stock Issued shares of common stock Apr.03 Common Stock Issued common stock for organization costs. Apr.08 Common Stock Issued common stock for equipment. Apr.20 Preferred Stock Issued shares of preferred stock. b. Prepare the stockholders' equity section of the balance sheet at April 30. Assume that the net income for April is $49,000. Stockholders' Equity Paid in Capital Additional Paid-in-Capital Paid-in-Capital in Excess of Par value - Preferred Stock Paid-in-Capital in Excess of Par value - Common Stock

Answer 1

April 1st 1v AL cash 1245000 Common sto ck 415000 Paid in Capital In exess $830000. of Velue Comm par April Goodwill $34000 Common Stoce 325000 Phidl n capital tneros $9000 of par value - Comman A pril e Equiponerd 51000 $20000 ommon stouk Paid in capital ineruy #31D00 of par value -Common

April Cash u95000 Poufrriad Stouk Paic in Capilal in exus of par value pre ferrec $450000 $45000. Stock holders Equty Paid in capital Common Stoct u60000 ( Prefred stouk $U5DOOD 910000 1ddit Dn paid in capita! Paid in Capital in Exaof Par value Csmmon Stoct 8t0000 Pre-ferrid Stouk uD00 $915000 Grand tot al 1825000