Question

DeLong Corporation was organized on January 1, 2017. It is authorized to issue 14,500 shares of 8%, $100 par value preferred stock, and 450,000 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 84,500 shares of common stock for cash at $6 per share.
Mar.	1		Issued 5,150 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 $91,000. The fair value of the land was $81,500.
May	1		Issued 84,000 shares of common stock for cash at $5.00 per share.
Aug.	1		Issued 10,000 shares of common stock to attorneys in payment of their bill of $39,500 for services performed in helping the company organize.
Sept.	1		Issued 11,500 shares of common stock for cash at $7 per share.
Nov.	1		Issued 2,000 shares of preferred stock for cash at $111 per share.

Journalize the transactions.

Post to the stockholders’ equity accounts. (Post entries in the order of journal entries presented in the previous part.) Prepare the paid-in capital section of stockholders’ equity at December 31, 2017. (Enter the account name only and do not provide the descriptive information provided in the question.)

Answer 1

Answer:

Date	Accounts Title and Explanations	Debit	Credit
10-Jan	Cash A/C (84500*$6)	507000
	Common stock (84500*$3)		253500
	Paid in capital in excess of stated value -common stock A/C		253500
1-Mar	Cash A/C (5150 shares*110)	566500
	Preferred stock (5150 shares*$100)		515000
	Paid in capital in excess of par - Preferred stock A/C		51500
1-Apr	Land (at fair value)	81500
	Common stock (23500 shares*$3)		70500
	Paid in capital in excess of stated value -common stock A/C		11000
1-May	Cash A/C (84000 shares*$5)	420000
	Common stock (84000 shares*$3)		252000
	Paid in capital in excess of stated value -common stock A/C		168000
1-Aug	Organizational expenses	39500
	Common stock (10000 shares*$3)		30000
	Paid in capital in excess of stated value -common stock A/C		9500
1-Sep	Cash A/C (11500 shares*$7)	80500
	Common stock (11500 shares*$3)		34500
	Paid in capital in excess of stated value -common stock A/C		46000
1-Nov	Cash A/C (2000 shares*$111)	222000
	Preferred stock (2000 shares*$100)		200000
	Paid in capital in excess of par - Preferred stock A/C		22000

Answer:

Preferred stock
Date	Explanation Ref.	Debit	Credit	Balance
1-Mar	J5		515000	515000
1-Nov	J5		200000	715000
Common stock
Date	Explanation Ref.	Debit	Credit	Balance
10-Jan	J5		253500	253500
1-Apr	J5		70500	324000
1-May	J5		252000	576000
1-Aug	J5		30000	606000
1-Sep	J5		34500	640500
Paid in capital in excess of par-Preferred stock
Date	Explanation Ref.	Debit	Credit	Balance
1-Mar	J5		51500	51500
1-Nov	J5		22000	73500
Paid in capital in excess of stated value-Common stock
Date	Explanation Ref.	Debit	Credit	Balance
10-Jan	J5		253500	253500
1-Apr	J5		11000	264500
1-May	J5		168000	432500
1-Aug	J5		9500	442000
1-Sep	J5		46000	488000

Answer:

Delong Corporation
Balance sheet (Partial)
31 december, 2017
Paid in capital
Capital stock
Preferred stock		715000
Common stock		640500
Total capital stock		1355500
Additional paid in capital:
Paid in capital in excess of par value-Preferred shares	73500
Paid in capital in excess of stated-Common shares	488000
Total additional paid in capital		561500
Total paid in capital		1917000