Question

Question 11

Pronghorn Corporation was organized on January 1, 2020. It is authorized to issue 11,000 shares of 8%, $100 par value preferred stock, and 498,000 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 75,500 shares of common stock for cash at $4 per share.
Mar.	1		Issued 5,550 shares of preferred stock for cash at $105 per share.
Apr.	1		Issued 24,500 shares of common stock for land. The asking price of the land was $85,500. The fair value of the land was $85,500.
May	1		Issued 75,500 shares of common stock for cash at $4.75 per share.
Aug.	1		Issued 11,500 shares of common stock to attorneys in payment of their bill of $40,000 for services performed in helping the company organize.
Sept.	1		Issued 11,000 shares of common stock for cash at $7 per share.
Nov.	1		Issued 2,500 shares of preferred stock for cash at $108 per share.

*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.)

*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, 2020. (Enter the account name only and do not provide the descriptive information provided in the question.)

Answer 1