Question

DeLong Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 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 80,000 shares of common stock for cash at $4 per share.
Mar.	1		Issued 5,000 shares of preferred stock for cash at $105 per share.
Apr.	1		Issued 24,000 shares of common stock for land. The asking price of the land was $90,000. The fair value of the land was $85,000.
May	1		Issued 80,000 shares of common stock for cash at $4.5 per share.
Aug.	1		Issued 10,000 shares of common stock to attorneys in payment of their bill of $30,000 for services performed in helping the company organize.
Sept.	1		Issued 10,000 shares of common stock for cash at $5 per share.
Nov.	1		Issued 1,000 shares of preferred stock for cash at $109 per share. Journalize the transactions

Answer 1

Answer:

Date	Particulars	Debit ($)	Credit ($)
10-Jan	cash (80000*4)	320,000
	common stock (320000/2)		160,000
	additional paid in capital (320000-160000)		160,000
1-Mar	cash (5000*105)	525,000
	preferred stock (5000*100)		500,000
	additional paid in capital (525000-500000)		25,000
1-Apr	land	85,000
	common stock (24000*2)		48,000
	additional paid in capital (85000-48000)		37,000
1-May	cash (80000*4.5)	360,000
	common stock (80000*2)		160,000
	additional paid in capital (360000-160000)		200,000
1-Aug	organizational expense	30,000
	common stock (10000*2)		20,000
	additional paid in capital (30000-20000)		10,000
1-Sep	cash (10000*5)	50,000
	common stock (10000*2)		20,000
	additional paid in capital (50000-20000)		30,000
1-Nov	cash (1000*109)	109,000
	preferred stock (1000*100)		100,000
	additional paid in capital (109000-100000)		9,000