Question

DeLong Corporation was organized on January 1, 2019. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 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 80,000 shares of common stock for cash at $4 per share.
Mar.	1		Issued 5,000 shares of preferred stock for cash at $105 per share.
Apr.	1		Issued 24,000 shares of common stock for land. The asking price of the land was $90,000. The fair value of the land was $85,000.
May	1		Issued 80,000 shares of common stock for cash at $4.50 per share.
Aug.	1		Issued 10,000 shares of common stock to attorneys in payment of their bill of $30,000 for services performed in helping the company organize.
Sept.	1		Issued 10,000 shares of common stock for cash at $5 per share.
Nov.	1		Issued 1,000 shares of preferred stock for cash at $109 per share. Journalize the transactions Prepare the paid-in capital section of stockholders’ equity at December 31, 2019

Answer 1

Journal Entry
Date	Account Name	Debit	Credit
10-Jan	Cash A/c (80000*4)	$           320,000
	To Common Stock (80000*2)		$                   160,000
	To paid in capital in excess of stated common stock (80000*2)		$                   160,000
1-Mar	Cash A/c (5000*105)	$           525,000
	To Preferred Stock (5000*100)		$                   500,000
	To Paid in capital in excess of Preferred Stock (5000*5)		$                     25,000
1-Apr	Land A/c	$             85,000
	To Common Stock (24000*2)		$                     48,000
	To paid in capital in excess of stated common stock		$                     37,000
1-May	Cash A/c (80000*4.5)	$           360,000
	To Common Stock (80000*2)		$                   160,000
	To paid in capital in excess of stated common stock (80000*2.5)		$                   200,000
1-Aug	Organization Expenses	$             30,000
	To Common Stock (10000*2)		$                     20,000
	To paid in capital in excess of stated common stock		$                     10,000
1-Sep	Cash A/c (10000*5)	$             50,000
	To Common Stock (10000*2)		$                     20,000
	To paid in capital in excess of stated common stock (10000*3)		$                     30,000
1-Nov	Cash A/c (1000*109)	$           109,000
	To Preferred Stock (1000*100)		$                   100,000
	To Paid in capital in excess of Preferred Stock (1000*9)		$                       9,000
Stockholder's equity Account
Preferred Stock
Date	Credit	Balance
1-Mar	$                                                                                             500,000	$           500,000
1-Nov	$                                                                                             100,000	$           600,000
Common Stock
Date	Credit	Balance
1-Jan	$                                                                                             160,000	$           160,000
1-Apr	$                                                                                               48,000	$           208,000
1-May	$                                                                                             160,000	$           368,000
1-Aug	$                                                                                               20,000	$           388,000
1-Sep	$                                                                                               20,000	$           408,000
Paid in capital in excess of Preferred Stock
Date	Credit	Balance
1-Mar	$                                                                                               25,000	$             25,000
1-Nov	$                                                                                                  9,000	$             34,000
paid in capital in excess of stated common stock
Date	Credit	Balance
1-Jan	$                                                                                             160,000	$           160,000
1-Apr	$                                                                                               37,000	$           197,000
1-May	$                                                                                             200,000	$           397,000
1-Aug	$                                                                                               10,000	$           407,000
1-Sep	$                                                                                               30,000	$           437,000
Paid in capital Section of Stockholder's equity
	Preferred Stock	$           600,000
	Common Stock	$           408,000
	paid in capital in excess of preferred stock	$             34,000
	Paid in capital in excess of stated common stock	$           437,000
	Paid in Capital of Stockholder's equity	$       1,479,000