Question

Problem 8-3 Ayayai Corp. was organized on January 1, 2017, It is authorized to issue 20,200 shares of 696, $50 par value preferred stock and 472,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. an. 10 Issued 65,600 shares of common stock for cash at $6 per share. Mar Issued 1,165 shares of preferred stock for cash at $57 per share May 1 Issued 121,000 shares of common stock for cash at $6 per share Sept. Issued 6,200 shares of common stock for cash at $7 per share Nov. 1 Issued 4,200 shares of preferred stock for cash at $56 per share Prepare a tabular summary to record the transactions. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities+ Stockholders' Equity Paid-in-Capital Retained Earnings PIC in Excess of PIC in Excess + of Par Value+ Pref + Common+Stated Value+ Stock Pref. Stock Cash Com Revenue Expense Dividend Jan. 10 Mar. 1 May 1 Sept. 1 Nov. 1 Total SHOW LIST OF ACCOUNTS Prepare the paid-in capital portion of the stockholders' equity section at December 31, 2017. AYAYAI CORP Partial Balance Sheet SHOW LIST OF ACCOUNTS

Answer 1

Solution:

Stockholders' Equity
Paid in Capital								Retained Earnings
Common Stock	+	PIC In excess of Par Com.	+	Pref. Stock	+	PIC in excess of Par pref.	+	revenue	-	Expense	-	Dividend
$65,600		$3,28,000
				$58,250		$8,155
$1,21,000		$6,05,000
$6,200		$37,200
				$2,10,000		$25,200
$1,92,800		$9,70,200		$2,68,250		$33,355

Ayayai Corp.
Partial Balance Sheet
December 31, 2017
Stockholders' Equity:
Paid in Capital:
Capital Stock:
Preferred Stock	$2,68,250
Common Stock	$1,92,800
Total capital Stock		$4,61,050
Additional Paid in Capital:
Paid in Capital in excess of Par -Preferred Stock	$33,355
Paid in Capital in excess of Par -Common Stock	$9,70,200
Total Additional paid in Capital		$10,03,555
Total paid in Capital		$14,64,605