Question

Monty Corp. was organized on January 1, 2017. It is authorized to issue 23,500 shares of 6%, $53 par value preferred stock and 459,000 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 69,500 shares of common stock for cash at $4 per share. Mar. 1 Issued 1,190 shares of preferred stock for cash at $54 per share. May 1 Issued 114,500 shares of common stock for cash at $7 per share. Sept. 1 Issued 4,900 shares of common stock for cash at $9 per share. Nov. 1 Issued 2,900 shares of preferred stock for cash at $54 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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Post to the stockholders’ equity accounts. (Post entries in the order of journal entries posted in the previous part.) Preferred Stock choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose the end date of the accounting period enter a debit balance choose the end date of the accounting period enter a credit balance Paid-in Capital in Excess of Par Value—Preferred Stock choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose the end date of the accounting period enter a debit balance choose the end date of the accounting period enter a credit balance Common Stock choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose the end date of the accounting period enter a debit balance choose the end date of the accounting period enter a credit balance Paid-in Capital in Excess of Stated Value—Common Stock choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose the end date of the accounting period enter a debit balance choose the end date of the accounting period enter a credit balance Prepare the paid-in capital portion of the stockholders’ equity section at December 31, 2017. MONTY CORP. Partial Balance Sheet choose the accounting period select an opening section name select an opening subsection name select a name of the subordinate part one of this subsection enter a balance sheet item $enter a dollar amount enter a balance sheet item enter a dollar amount select a summarizing line for the subordinate part one of this subsection $enter a subtotal of the two previous amounts select a name of the subordinate part two of this subsection enter a balance sheet item enter a dollar amount enter a balance sheet item enter a dollar amount select a summarizing line for the subordinate part two of this subsection enter a subtotal of the two previous amounts select a closing subsection name $enter a total amount for this subsection

Answer 1

Solution:

Journal Entries
Date	Particulars	Debit	Credit
10-Jan	Cash Dr (69500*$4)	$278,000.00
	To Common Stock (69500*$1)		$69,500.00
	To Paid in Capital in excess of Stated Value- Common Stock		$208,500.00
	(To record issue of 69,500 shares of Common stock)
1-Mar	Cash Dr (1190*$54)	$64,260.00
	To Preferred Stock (1190*$53)		$63,070.00
	To Paid in Capital in excess of Par Value - Pref. Stock		$1,190.00
	(To record issue of 1190 shares of Preferred stock)
1-May	Cash Dr (114500*$7)	$801,500.00
	To Common Stock (114500*$1)		$114,500.00
	To Paid in Capital in excess of Stated Value- Common Stock		$687,000.00
	(To record issue of 114,500 shares of Common stock)
1-Sep	Cash Dr (4900*$9)	$44,100.00
	To Common Stock (4900*$1)		$4,900.00
	To Paid in Capital in excess of Stated Value- Common Stock		$39,200.00
	(To record issue of 4900 shares of Common stock)
1-Nov	Cash Dr (2900*$54)	$156,600.00
	To Preferred Stock (2900*$53)		$153,700.00
	To Paid in Capital in excess of Par Value - Pref. Stock		$2,900.00
	(To record issue of 2900 shares of Preferred stock)

Monty Corp.
Balance Sheet (Partial)
31-Dec-17
Stockholder's Equity:
Contributed Capital:
Contributed Capital from Preferred stock:
Preferred Stock	$216,770.00
Paid in Capital in excess of Par Value - Pref. Stock	$4,090.00
Total Contributed Capital from Preferred stock		$220,860.00
Contributed Capital from Common stock:
Common Stock	$188,900.00
Paid in Capital in excess of Stated Value- Common Stock	$934,700.00
Total Contributed Capital from Common stock		$1,123,600.00
Total Paid in capital		$1,344,460.00