Question

Exercise 15-2 Pearl Corporation was organized on January 1,2017. It is authorized to issue 9,100 shares of 8%, $100 par value preferred stock, and 525,800 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 80,170 shares of common stock for cash at $6 per share Mar. 1 Issued 5,410 shares of preferred stock for cash at $112 per share. Apr. 1 1ssued 24,730 shares of common stock for land. The asking price of the land was s91,570; the fair value of the land was $80,170. May 1 Issued 80,170 shares of common stock for cash at $9 per share. Aug. 1 Issued 9,100 shares of common stock to attorneys in payment of their bill of $50,100 for services rendered in helping the company organize. Sept. 1 ssued 9,100 shares of common stock for cash at $11 per share Nov. 1 Issued 1,010 shares of preferred stock for cash at $106 per share Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit

Answer 1

		Dr	Cr
Jan10	Cash 80170*6	$481,020.00
	Common Stock 80170*1		$80,170.00
	Paid-in Capital in excess of stated		$400,850.00
Mar1	Cash 5410*112	$605,920.00
	Preferred stock		$541,000.00
	Paid-in Capital in excess of stated		$64,920.00
April 1	Land	$91,750.00
	Common Stock		$24,730.00
	Paid-in Capital in excess of stated		$67,020.00
May 1	Cash 80170*9	$721,530.00
	Common Stock		$80,170.00
	Paid-in Capital in excess of stated		$641,360.00
Aug 1	Account Payable	$50,100.00
	Common Stock		$9,100.00
	Paid-in Capital in excess of stated		$41,000.00
Sep 1	Cash 9100*11	$100,100.00
	Common Stock		$9,100.00
	Paid-in Capital in excess of stated		$91,000.00
Nov 1	Cash 1010*106	$107,060.00
	Preferred stock 1010*100		$101,000.00
	Paid-in Capital in excess of stated		$6,060.00