Question

Swifty Corporation was organized on January 1, 2022. It is authorized to issue 19,700 shares of 7%, $52 par value preferred stock and 471,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Issued 65,100 shares of common stock for cash at $4 per share. Jan. 10 Issued 1,155 shares of preferred stock for cash at $56 per share Mar 1 May 1 Issued 120,500 shares of common stock for cash at $6 per share. Issued 6,100 shares of common stock for cash at $7 per share. Sept. 1 Issued 4,100 shares of preferred stock for cash at $54 per share. Nov. 1 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. if no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Debit Date Account Titles and Explanation Credit Jan. 10 Cash Common Stock Paid-in Capital in Excess of Par Value-Common Stock Mar. 1 Cash Preferred Stock Paid-in Capital in Excess of Par Value-Common Stock May 1 Cash Common Stock paid Sept. 1 cash

Answer 1

Requirement 1: Prepare the journal entries as follows

Date	Account Title and Explanation	Debit	Credit
Jan. 10	Cash (65,100 × $4)	$260,400
	Common Stock (65,100 × $1)		$65,100
	Paid-in Capital in Excess of Par Value - Common Stock		$195,300
	To record common stock issued
Mar. 1	Cash (1,155 × $56)	$64,680
	Preferred Stock (1,155 × $52)		$60,060
	Paid-in Capital in Excess of Par Value - Preferred Stock		$4,620
	To record preferred stock issued
May. 1	Cash (120,500 × $6)	$723,000
	Common Stock (120,500 × $1)		$120,500
	Paid-in Capital in Excess of Par Value - Common Stock		$602,500
	To record common stock issued
Sept. 1	Cash (6,100 × $7)	$42,700
	Common Stock (6,100 × $1)		$6,100
	Paid-in Capital in Excess of Par Value - Common Stock		$36,600
	To record common stock issued
Nov. 1	Cash (4,100 × $54)	$221,400
	Preferred Stock (4,100 × $52)		$213,200
	Paid-in Capital in Excess of Par Value - Preferred Stock		$8,200
	To record preferred stock issued

Requirement 2: Post to T-Accounts as follows

Common Stock $65,100 Jan. 10 $120,500 May. 1 $6.100 Sept. 1 Paid-in Capital in Excess of Par - Common $195,300 Jan 10 $602,500 May. 1 $36.600 Sept. 1 $191,700 End. Bal 5834,400 End. Bal Preferred Stock $60.060 Mar. 1 $213.200 Nov. 1 Paid-in Capital in Excess of Par - Preferred $4,620 Mar. 1 $8,200 Nov. 1 $273,260 End. Bal $12.820 End. Bal

Requirement 3: Prepare the partial balance sheet as follows

S Inc
Balance Sheet (Partial)
December 31, 2012
Stockholders' Equity
Paid-in Capital
Capital Stock
7% Preferred Stock, $52 par value	$273,260
Common stock, no par, $1 stated value	$191,700
Total Capital Stock		$464,960
Additional Paid-in Capital
Paid-in Capital in Excess of Par Value - Preferred stock	$12,820
Paid-in Capital in Excess of Par Value - Common stock	$834,400
Total additional paid-in Capital		$847,220
Total Paid-in Capital		$1,312,180