Question

Bramble Corp. was organized on January 1, 2022. It is authorized to issue 20,000 shares of 5%, $52 par value preferred stock and 452,000 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 66,000 shares of common stock for cash at $6 per share.
Mar.	1		Issued 1,120 shares of preferred stock for cash at $55 per share.
May	1		Issued 111,000 shares of common stock for cash at $7 per share.
Sept.	1		Issued 4,200 shares of common stock for cash at $7 per share.
Nov.	1		Issued 2,200 shares of preferred stock for cash at $57 per share.

Journalize the transactions.

Post to the stockholders’ equity accounts.

Prepare the paid-in capital portion of the stockholders’ equity section at December 31, 2022.

Answer 1

Answer a Credit Debit $396,000 Date Account Titles & Explanation Jan. 10 Cash (66,000 shares x $6) Common Stock (66,000 shares x $3) Paid-in Capital in Excess of Stated Value - Common Stock [66,000 shares x ($6 - $3)] (To record the issue of common stock) $198,000 $198,000 $61,600 Mar. 1 Cash (1,120 shares x $55) Preferred Stock (1,120 shares x $52) Paid-in Capital in Excess of Par Value - Preferred Stock [1,120 shares x ($55 - $52)] (To record the issue of preferred stock) $58,240 $3,360 $777,000 May. 1 Cash (111,000 shares x $7) Common Stock (111,000 shares x $3) Paid-in Capital in Excess of Stated Value - Common Stock [111,000 shares x ($7 - $3)] (To record the issue of common stock) $333,000 $444,000 $29,400 Sept. 1 Cash (4,200 shares x $7) Common Stock (4,200 shares x $3) Paid-in Capital in Excess of Stated Value - Common Stock [4,200 shares x ($7 - $3)] (To record the issue of common stock) $12,600 $16,800 Nov. 1 $125,400 Cash (2,200 shares x $57) Preferred Stock (2,200 shares x $52) Paid-in Capital in Excess of Par Value - Preferred Stock [2,200 shares x ($57 - $52)] (To record the issue of preferred stock) $114,400 $11,000

Preferred Stock Mar. 1 Nov. 1 Dec. 31 $58,240 $114,400 $172,640 Paid-in Capital in Excess of Par Value - Preferred Stock Mar. 1 $3,360 Nov. 1 $11,000 Dec. 31 Bal $14,360 Bal Common Stock Jan. 10 May. 1 Sept. 1 Dec. 31 $198,000 $333,000 $12,600 $543,600 Paid-in Capital in Excess of Stated Value - Common Stock Jan. 10 $198,000 May. 1 $444,000 Sept. 1 $ 16,800 Dec. 31 Bal $658,800 Bal BRAMBLE CORPORATION Partial Balance Sheet December, 31 2022 Stockholders' equity Paid-in capital Capital stock 5% Preferred stock, $52 par value, 20,000 shares authorized and 3,320 shares issued Common stock, no-par, $3 stated value, 452,000 shares authorized, 181,200 shares issued Total capital stock $172,640 $543,600 $716,240 Additional paid-in capital Paid-in capital in excess of par value - Preferred Stock Paid-in capital in excess of par value - Common Stock Total additional paid-in capital $14,360 $658,800 $673,160 Total paid-in capital $1,389,400