Question

Question 1

Bridgeport Corporation was organized on January 1, 2020. It is authorized to issue 15,000 shares of 8%, $100 par value preferred stock, and 504,000 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 85,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 5,150 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 22,000 shares of common stock for land. The asking price of the land was $90,000. The fair value of the land was $84,000. May 1 Issued 78,000 shares of common stock for cash at $5.25 per share. Aug. 1 Issued 11,000 shares of common stock to attorneys in payment of their bill of $43,000 for services performed in helping the company organize. Sept. 1 Issued 12,000 shares of common stock for cash at $7 per share. Nov. 1 Issued 1,000 shares of preferred stock for cash at $113 per share.

A)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.)

B)Post to the stockholders’ equity accounts. (Post entries in the order of journal entries presented in the previous part.)

C)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.) If written, Please write clearly

Answer 1

A.)	Date	Account Titles	Debit $	Credit $
	Jan.10	Cash ( 85,000 x 4 )	340,000
		Common Stock ( 85,000 x 2 )		170,000
		Paid in Capital in excess of Stated Value-Common Stock		170,000
	Mar.1	Cash ( 5,150 x 110 )	566,500
		Preferred Stock ( 5,150 x 100 )		515,000
		Paid in Capital in excess of par Value-Preferred Stock		51,500
	Apr.1	Land	84,000
		Common Stock ( 22,000 x 2 )		44,000
		Paid in Capital in excess of Stated Value-Common Stock		40,000
	May.1	Cash ( 78,000 x 5.25 )	409,500
		Common Stock ( 78,000 x 2 )		156,000
		Paid in Capital in excess of Stated Value-Common Stock		253,500
	Aug.1	Company Incorporation Expense	43,000
		Common Stock ( 11,000 x 2 )		22,000
		Paid in Capital in excess of Stated Value-Common Stock		21,000
	Sep.1	Cash ( 12,000 x 7 )	84,000
		Common Stock ( 12,000 x 2 )		24,000
		Paid in Capital in excess of Stated Value-Common Stock		60,000
	Nov.1	Cash ( 1,000 x 113 )	113,000
		Preferred Stock ( 1,000 x 100 )		100,000
		Paid in Capital in excess of par Value-Preferred Stock		13,000

	Common Stock-$2 Stated Value		Amount in $
		Jan.10	170,000
		Apr.1	44,000
		May.1	156,000
		Aug.1	22,000
		Sep.1	24,000
		Balance	416,000
	Preferred Stock- $ 100 Par Value		Amount in $
		Mar.1	515,000
		Nov.1	100,000
		Balance	615,000
	Paid in Capital in excess of Stated Value-Common Stock		Amount in $
		Jan.10	170,000
		Apr.1	40,000
		May.1	253,500
		Aug.1	21,000
		Sep.1	60,000
		Balance	544,500
	Paid in Capital in excess of par Value-Preferred Stock		Amount in $
		Mar.1	51,500
		Nov.1	13,000
		Balance	64,500

C.)		Amount in $
	Common Stock- $2 Stated Value	416,000
	Preferred Stock- $100 par value	615,000
	Paid in Capital in excess of Stated Value-Common Stock	544,500
	Paid in Capital in excess of par Value-Preferred Stock	64,500
	Total Paid in Capital Stockholder's Equity	1,640,000