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. Post to the stockholders’ equity accounts Prepare the paid-in capital section of stockholders’ equity at December 31, 2020

Answer 1

Preferred stock
Date	Explanation Ref.	Debit	Credit	Balance
1-Mar	(5000*100)		$500,000.00	$500,000.00
1-Nov	(1000*100)		$100,000.00	$600,000.00
Common stock
Date	Explanation Ref.	Debit	Credit	Balance
10-Jan	(80000*2)		160000	160000
1-Apr	(24000*2)		48000	208000
1-May	(8000*2)		16000	224000
1-Aug	(10000*2)		20000	244000
1-Sep	(10000*2)		20000	264000
Paid in capitotal in excess of par-Preferred stock
Date	Explanation Ref.	Debit	Credit	Balance
1-Mar	(5000*5)		25000	25000
1-Nov	(1000*9)		9000	34000
Paid in capitotal in excess of stated value-Common stock
Date	Explanation Ref.	Debit	Credit	Balance
10-Jan	(80000*2)		160000	160000
1-Apr	85000-(24000*2)		37000	197000
1-May	(8000*2.5)		20000	217000
1-Aug	30000-(10000*2)		10000	227000
1-Sep	(10000*3)		30000	257000
Answer:
	Delong Corporation
	Balance Sheet (Partial)
	31 December, 2020
	Paid In Capitotal
	Capitotal Stock
	Preferred Stock	$600,000.00
	Common Stock	$264,000.00
	Total Capital Stock		$864,000.00
	Additional Paid In Capitotal:
	Paid In Capital In Excess Of Par Value-Preferred Shares	$34,000.00
	Paid In Capitotal In Excess Of Stated-Common Shares	$257,000.00
	Total Additional Paid In Capital		$291,000.00
	Total Paid In Capital		$1,155,000.00