Question

Riverbed Corporation was organized on January 1, 2020. It is authorized to issue 11,000 shares of 8%, $100 par value preferred stock, and 535,600 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. Issued 80,370 shares of common stock for cash at $6 per share. 10 Mar. Issued 5,570 shares of preferred stock for cash at $110 per share. 1 Apr. 1 Issued 24,250 shares of common stock for land. The asking price of the land was $91,730; the fair value of the land was $80,370. May Issued 80,370 shares of common stock for cash at $8 per share. Aug. 1 Sept. Issued 11,000 shares of common stock to attorneys in payment of their bill of $54,600 for services rendered in helping the company organize. Issued 11,000 shares of common stock for cash at $10 per share. 1 Nov. Issued 1,100 shares of preferred stock for cash at $115 per share. 1

Answer 1

Credit Date Jan. 10 Debit 482,220 Account title and explanation Cash (80,370 x $6) Common stock (80,370 x $1) Paid in capital in excess of stated-Common stock 80,370 401,850 Mar. 1 612,700 Cash (5,570 x $110) Preferred stock (5,570 x $100) Paid in capital in excess of par-Preferred stock 557,000 55,700 Apr. 1 80,370 Land Common stock (24,250 x $1) Paid in capital in excess of stated-Common stock 24,250 56,120 May. 1 642,960 Cash (80,370 x $8) Common stock (80,370 x $1) Paid in capital in excess of stated-Common stock 80,370 562,590 Aug. 1 54.600 Organization expense Common stock (11,000 x $1) Paid in capital in excess of stated-Common stock 11,000 43,600 Sept. 1 110,000 Cash (11,000 x $10) Common stock (11,000 x $1) Paid in capital in excess of stated-Common stock 11,000 99,000 Nov.1 126,500 Cash (1,100 x $115) Preferred stock (1,100 x $100) Paid in capital in excess of par-Preferred stock 110,000 16,500