Question

Grouper Corp. was organized on January 1, 2022. It is authorized to issue 22,000 shares of 6%, $53 par value preferred stock and 456,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.

Jan.	10		Issued 68,000 shares of common stock for cash at $6 per share.
Mar.	1		Issued 1,160 shares of preferred stock for cash at $56 per share.
May	1		Issued 113,000 shares of common stock for cash at $7 per share.
Sept.	1		Issued 4,600 shares of common stock for cash at $4 per share.
Nov.	1		Issued 2,600 shares of preferred stock for cash at $57 per share.

NEED:

1.) Pots journal Entries.

2.) Post the stockholder's equity accounts.

3.) Create a Balance sheet.

Answer 1

DATE	ACCOUNT TITLE & EXPLANATION	DEBIT	CREDIT
10-Jan-22	Cash	$408,000
	Common Stock		$68,000
	Additional Paid-in Capital-Common Stock		$340,000
	68000 shares issued @ 6 per share
1-Mar-22	Cash	$64,960
	Preferred Stock		$61,480
	Additional Paid-in Capital-Preferred Stock		$3,480
	1160 preferred shares issued @ 56 per share
1-May-22	Cash	$791,000
	Common Stock		$113,000
	Additional Paid-in Capital-Common Stock		$678,000
	113000 shares issued @ 7 per share
1-Sep-22	Cash	$18,400
	Common Stock		$4,600
	Additional Paid-in Capital-Common Stock		$13,800
	4600 shares issued @ 4 per share
1-Nov-22	Cash	$148,200
	Preferred Stock		$137,800
	Additional Paid-in Capital-Preferred Stock		$10,400
	2600 preferred shares issued @ 57 per share
	Stock Holders' Equity
		Amount
	Paid-in- Capital
	Common Stock - Authorized 456000 shares and 185600 Shares issued and outstanding at no par value	$185,600
	6% Preferred Stock - Authorized 22000 shares and 3760 Shares issued and outstanding at $53 par value	$199,280
	Additional Paid-in Capital-Common Stock	$1,031,800
	Additional Paid-in Capital-Preferred Stock	$13,880
	Total Stock Holders' Equity	$1,430,560
	Balance Sheet
	Liabilities	Amount	Assets	Amount
	Common Stock - Authorized 456000 shares and 185600 Shares issued and outstanding at no par value	$            185,600	Cash	$        1,430,560
	6% Preferred Stock - Authorized 22000 shares and 3760 Shares issued and outstanding at $53 par value	$            199,280
	Additional Paid-in Capital-Common Stock	$        1,031,800
	Additional Paid-in Capital-Preferred Stock	$              13,880
		$        1,430,560		$        1,430,560