Question

Bridgeport Corporation was organized on January 1, 2020. It is authorized to issue 14,500 shares of 8%, $100 par value preferred stock, and 464,000 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 81,500 shares of common stock for cash at $6 per share.
Mar.	1		Issued 4,300 shares of preferred stock for cash at $110 per share.
Apr.	1		Issued 22,500 shares of common stock for land. The asking price of the land was $87,000. The fair value of the land was $83,500.
May	1		Issued 85,000 shares of common stock for cash at $4.25 per share.
Aug.	1		Issued 12,000 shares of common stock to attorneys in payment of their bill of $40,500 for services performed in helping the company organize.
Sept.	1		Issued 12,000 shares of common stock for cash at $6 per share.
Nov.	1		Issued 2,500 shares of preferred stock for cash at $114 per share.

1- Journalize the transactions.

2-Post to the stockholders’ equity accounts.

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

Answer 1

Bridgeport Corporation
Date	Accounts Title and Explanations	Debit	Credit
10-Jan	Cash (80500 Share *$6)	$483,000.00
	Common stock (80500*$3)		$241,500.00
	Paid in capital in excess of stated value -common stock		$241,500.00
	Record Issuance of Common stock
1-Mar	Cash (4400 shares*105)	$462,000.00
	Preferred stock (4400 shares*$100)		$440,000.00
	Paid in capital in excess of par - Preferred stock		$22,000.00
	Record Issuance of Preferred stock
1-Apr	Land (at fair value)	$87,500.00
	Common stock (24500 shares*$3)		$73,500.00
	Paid in capital in excess of stated value -common stock (BF)		$14,000.00
	Record Issuance of Common stock in lieu of land
1-May	Cash (85000 Share *$4.25)	$361,250.00
	Common stock (85000*$3)		$255,000.00
	Paid in capital in excess of stated value -common stock		$106,250.00
	Record Issuance of Common stock
1-Aug	Organizational expenses	$45,000.00
	Common stock (10000 shares*$3)		$30,000.00
	Paid in capital in excess of stated value -common stock		$15,000.00
	Record Issuance of Common stock in lieu of service
1-Sep	Cash (10000 shares*$6)	$60,000.00
	Common stock (10000 shares*$3)		$30,000.00
	Paid in capital in excess of stated value -common stock		$30,000.00
	Record Issuance of Common stock
1-Nov	Cash (1500 shares*$115)	$172,500.00
	Preferred stock (1500 shares*$100)		$150,000.00
	Paid in capital in excess of par - Preferred stock		$22,500.00
	Record Issuance of Preferred stock

Common stock
		10-Jan	$241,500.00
		1-May	$73,500.00
		1-Sep	$255,000.00
			$570,000.00
Paid in capital in excess of par-Preferred stock
		1-Mar	$22,000.00
		1-Nov	$22,500.00
			$44,500.00
Paid in capital in excess of stated value-Common stock
		10-Jan	$241,500.00
		1-May	$14,000.00
		1-Sep	$106,250.00
			$361,750.00
Preferred Stock
		1-Mar	$440,000.00
		1-Nov	$150,000.00
			$590,000.00

Balance sheet (Partial)
31 december, 2020
Paid in capital
Capital stock
Preferred stock		$590,000.00
Common stock		$570,000.00
Total capital stock		$1,160,000.00
Additional paid in capital:
Paid in capital in excess of par value-Preferred shares	$44,500.00
Paid in capital in excess of stated-Common shares	$361,750.00
Total additional paid in capital		$406,250.00
Total paid in capital		$1,566,250.00