Bramble Corporation was organized on January 1, 2020. It is authorized to Issue 11,000 shares of 8%, $100 par value preferred stock, and 524,000 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 83,000 shares of common stock for cash at $4 per share.
Mar. 1 Issued 4,600 shares of preferred stock for cash at $110 per share.
Apr. 1 Issued 23,000 shares of common stock for land. The asking price of the land was $89,500. The fair value of the land was $86,000.
May 1 Issued 81,000 shares of common stock for cash at $5.00 per share.
Aug. 1 Issued 10,500 shares of common stock to attorneys in payment of their bill of $42,000 for services performed in helping the company organize.
Sept. 1 Issued 10,500 shares of common stock for cash at $5 per share.
Nov. 1 Issued 3,000 shares of preferred stock for cash at $112 per share.
Working as follows:
Prepare journal entries:
Date | General Journal | Debit | Credit |
Jan. 10 | Cash (83,000 shares × $4) | $332,000 | |
Common stock (83,000 shares × $2) | $166,000 | ||
Paid-in capital in excess of par value-Common stock | $166,000 | ||
Mar. 01 | Cash (4,600 shares × $110) | $506,000 | |
Preferred stock (4,600 shares × $100) | $460,000 | ||
Paid-in capital in excess of par value-Preferred stock | $46,000 | ||
Aprl. 01 | Land | $86,000 | |
Common stock (23,000 shares × $2) | $46,000 | ||
Paid-in capital in excess of par value-Common stock | $40,000 | ||
May 01 | Cash (81,000 shares × $5) | $405,000 | |
Common stock (81,000 shares × $2) | $162,000 | ||
Paid-in capital in excess of par value-Common stock | $243,000 | ||
Aug. 01 | Organization expense | $42,000 | |
Common stock (10,500 shares × $2) | $21,000 | ||
Paid-in capital in excess of par value-Common stock | $21,000 | ||
Sep. 01 | Cash | $52,500 | |
Common stock (10,500 shares × $2) | $21,000 | ||
Paid-in capital in excess of par value-Common stock | $31,500 | ||
Nov. 01 | Cash (3,000 shares × $112) | $336,000 | |
Preferred stock (3,000 shares × $100) | $300,000 | ||
Paid-in capital in excess of par value-Preferred stock | $36,000 |
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Prepare T-Accounts as follows:
Common stock | |||
Jan. 10 | $166,000 | ||
Aprl. 01 | $46,000 | ||
May 01 | $162,000 | ||
Aug. 01 | $21,000 | ||
Sept. 01 | $21,000 | ||
End. Bal. | $416,000 | ||
Paid-in capital in excess of par value-Common stock | |||
Jan. 10 | $166,000 | ||
Aprl. 01 | $40,000 | ||
May 01 | $243,000 | ||
Aug. 01 | $21,000 | ||
Sept. 01 | $31,500 | ||
End. Bal. | $501,500 | ||
Preferred stock | |||
Mar 01 | $460,000 | ||
Nov 01 | $300,000 | ||
End. Bal. | $760,000 | ||
Paid-in capital in excess of par value-Preferred stock | |||
Mar 01 | $46,000 | ||
Nov 01 | $36,000 | ||
End. Bal. | $82,000 |
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Prepare partial balance sheet as follows:
Bramble Corp. | ||
Balance Sheet (partial) | ||
As of December 31, 2020 | ||
Stockholders' Equity | ||
8% Preferred stock issued at par $100 per share | $760,000 | |
Common stock issued at par $2 per share | $416,000 | |
Total capital stock | $1,176,000 | |
Additional paid-in capital: | ||
Paid-in capital in excess of par value-Common stock | $501,500 | |
Paid-in capital in excess of par value-Preferred stock | $82,000 | |
Total Additional paid-in capital | $583,500 | |
Total stockholders' equity | $1,759,500 |
Bramble Corporation was organized on January 1, 2020. It is authorized to Issue 11,000 shares of 8%
Bramble Corporation was organized on January 1, 2020. It is authorized to Issue 11,000 shares of 8%, $100 par value preferred stock, and 524,000 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 83,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 4,600 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 23,000 shares...
Bramble Corporation was organized on January 1, 2020. It is authorized to Issue 11,000 shares of 8%, $100 par value preferred stock, and 524,000 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 83,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 4,600 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 23,000 shares...
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