Question

actice Assignment Gradebook ORION Downloadable eTextbook gnment 0235 PM/ Remaining 165 min. CALCULATOR PULL SCREEN PRINTER VERSION BACK NEXT Question 11 Swifty Corporation was organized on January 1, 2020. It is authorized to issue 15,000 shares of 8%, $100 par value preferred stock, and 456,000 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 79,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 5,000 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 23,500 shares of common stock for land. The asking price of the land was $94,500. The fair value of the land was $87,500. May 1 Issued 77,500 shares of common stock for cash at $5.25 per share. Aug. 1 Issued 11,000 shares of common stock to attorneys in payment of their bill of $45,000 for services performed in helping the company organize. Sept. 1 Issued 11,000 shares of common stock for cash at $5 per share. Nov. 1 Issued 2,000 shares of preferred stock for cash at $113 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

Answer 1

a) Touinalentiles are Date Jan10 Cash (79.000 x $4). 2020 as folpws Debit (3) corditt5) Account 3,16000 TO commanstock(79000x$2 Topaid-In cepital in Eecess of pa – common stock 158000 158006 (79000XS2) mari1 Cash (so00X8|l0 2020 TO Prefexred stock(5000X $100| to Paid-In capital in. Excess of par- preferred stock (5000 X10) 550,000 500000 50,000 April 1 Land 87.500 2020 48000 37000 To commanstedc(24000x$2 TO Paid-Ih.capital ihesecess of pons - commen stock may.1 Cash ( 77,500 X $5.25) TO Comman stode(77 500X$2 Topaid In capitad in Excess of par- Commonstoac 406,875 2020 155,000 251875 Aug 1 Legal service. 2020 45000 TO Commen stoclk(11000x321 To paid-In Ceptal in EXcess of pas-cormman stoac 22000 23.000 Sept. 1 cashCll000X85 55000 To comman stock (100ox $2) topaid in capital in EXless of par-commonstock Cash (2000x$ 113). 2020. Topreferied stock (2000x31oo TO Paid-In captal in EXcess Otpo-Prefersed stock 2020 22000 3२००० Nov. 1 226000 200000 26000

(b) Share holdess Equity aco unts. freferned stock 5000, prefeared stock (5000X8/00) 2000 preterred stock (2000y9/00). 500000 200000 700,000 () Comman stock 79000 Comman stock (79000X $21 24000 Comman stoac (24000X$2) 77500 common stock C72500X$2) 11000 Comman stoak c 11000X $2) 11000 camman stockk c |l000 x $23 158000 48000 155000 22000 22000 40,5000 preferied GD peid -in cepital excess of Value'- Ee stack 5000 prefermed stock (5000 X $19. 2000preferred stock (2000 x $13) 50,000 26000 76000 Pad-in capital esleess of valcu-comman stock 279000 COmman stock (79000 X2) 24000 (ommn sto k 24000X 77500 Commen stackk 11600 158000 37000 251875 23000 33000 502875 Balanu shect CRestias comman stocle etock comman 1000 SWIFTY Corparation LIabilihes. fre fesred sto (le Paid-in capital esecess of Prefenred sto ck camman s2ock paid i'n capital excess of 70900 76000 776000 405000 502875 T1,683,875 Tut al Equity St8'18911