Question

Sheridan Corporation was organized on January 1, 2017. It is authorized to issue 10,600 shares of 8%, $100 par value preferred stock, and 538,200 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 80,710 shares of common stock for cash at $7 per share. Mar. 1 Issued 6,000 shares of preferred stock for cash at $113 per share. Apr. 1 Issued 24,600 shares of common stock for land. The asking price of the land was $91,730; the fair value of the land was $80,710. May 1 Issued 80,710 shares of common stock for cash at $9 per share. Aug. 1 Issued 10,600 shares of common stock to attorneys in payment of their bill of $48,100 for services rendered in helping the company organize. Sept. 1 Issued 10,600 shares of common stock for cash at $11 per share. Nov. 1 Issued 990 shares of preferred stock for cash at $117 per share.

Answer 1

DATE	PARTICULAR	DEBIT	CREDIT
Jan 10	cash (80710*7)	$564,970
	Common stock(80710*$1)		$80,710
	Common stock (APIC)		$484,260
Mar 1	cash (6000*$113)	$678,000
	Preferred stock(6000*$100)		$600,000
	Preferred stock(APIC)		$78,000
Apr 1	Land (fair value)	$80,710
	Common stock(24600*$1)		$24,600
	Common stock(APIC)		$56,110
May 1	Cash (80710*$9)	$726,390
	Common stock(80710*$1)		$80710
	Common stock (APIC)		$645,680
Aug 1	Organizational expenses	$48,100
	Common stock (10600*$1)		$10600
	Common stock(APIC)		$37,500
Sep 1	Cash(10600*$11)	$116,600
	Common stock(10600*$1)		10600
	Common stock(APIC)		$106,000
Nov. 1	Cash(990*$117)	$115,830
	Preferred stock(990*100)		$99,000
	Preferred stock(APIC)		$16,830

Additional paid in capital (APIC) is any payment received from investors for stock that exceeds the par value of the stock