Question

ament 04:51 PM / Remaining: 154 min CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Question 11 Flounder Corporation was organized on January 1, 2020. It is authorized to issue 14,000 shares of 8%, $100 par value preferred stock, and 505,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 77,000 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,800 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 $88,000. The fair value of the land was $81,000 May 1 Issued 76,000 shares of common stock for cash at $4,25 per share. Aug. 1 Issued 10,500 shares of common stock to attorneys in payment of their bill of $36,000 for services performed in helping the company organize Sept. 1 Issued 12,000 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. 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.) Date Account Titles and Explanation Debit Credit 0 5 .17

Answer 1

1)

Date	Account titles and explanation	Debit	Credit
Jan 10	Cash (77000*$6)	$462000
	Common stock (77000*$3)		$231000
	Paid-in capital in excess of stated value- Common stock (462000-231000)		$231000
	(To record common stock issued)
March 1	Cash (5800*$105)	$609000
	Preferred stock (5800*$100)		$580000
	Paid-in capital in excess of par- Preferred stock (609000-580000)		$29000
	(To record preferred stock issued)
April 1	Land	$81000
	Common stock (25000*$3)		$75000
	Paid-in capital in excess of stated value- Common stock (81000-750000		$6000
	(To record common stock issued for land)
May 1	Cash (76000*$4.25)	$323000
	Common stock (76000*$3)		$228000
	Paid-in capital in excess of stated value- Common stock (323000-228000)		$95000
	(To record common stock issued)
Aug 1	Organization expense	$36000
	Common stock (10500*$3)		$31500
	Paid-in capital in excess of stated value- Common stock (36000-31500)		$4500
	(To record common stock issued)
Sep 1	Cash (12000*$5)	$60000
	Common stock (12000*$3)		$36000
	Paid-in capital in excess of stated value- Common stock (60000-36000)		$12000
	(To record common stock issued)
Nov 1	Cash (3000*$112)	$336000
	Preferred stock (3000*$100)		$300000
	Paid-in capital in excess of par- Preferred stock (336000-300000)		$36000
	(To record preferred stock issued)

2)

Preferred Stock
		Mar 1	580000
		Nov 1	300000
		Bal.	880000
Common Stock
		Jan 10	231000
		April 1	75000
		May 1	228000
		Aug 1	31500
		Sep 1	36000
		Bal	601500
Paid-in capital in excess of Par- Preferred stock
		Mar 1	29000
		Nov 1	36000
		Bal.	65000
Paid-in capital in excess of Stated value- Common stock
		Jan 10	231000
		Apr 1	6000
		May 1	95000
		Aug 1	4500
		Sep 1	12000
		Bal	348500

3)

FLOUNDER CORPORATION
Balance Sheet (Partial)
December 31, 2020
Paid in capital
Capital stock
Preferred stock		$880000
Common stock		601500
Total capital stock		1481500
Additional Paid-in capital
Paid-in capital in excess of Par- Preferred stock	$65000
Paid-in capital in excess of Stated value- Common stock	348500
Total additional paid in capital		413500
Total Stockholders' equity		$1895000