Answer and Explanation:
According to the scenario, computation of the given data are as follow:
Journal entries
On Jan. 10
Cash A/c ($6 × 84,500) Dr. $507,000
To Common stock A/c ($3 ×84,500) $253,500
To Paid in capital in excess of stated value common stock A/c $253,500
On Mar. 1
Cash A/c($110 × 5,150) A/c Dr. $566,500
To Preferred stock A/c ($100 × 5150) $515,000
To Paid in capital in excess of par –preferred stock A/c $51,500
(Being the issuance of the preferred stock is recorded)
On April 1
Land A/c Dr. $81500
To Common stock A/c ($3 × 23,500) $70,500
To Paid in capital in excess of stated value common stock A/c $11,000
(Being the issuance of the common stock is recorded)
On May 1
Cash A/c ($5 × 84,000) Dr. $420,000
To Common stock A/C($3 × 84,000) $252,000
To Paid in capital in excess of stated value common stock A/c $168,000
(Being the issuance of the common stock is recorded)
On Aug. 1
Organizational expenses A/c Dr. $39,500
To Common stock A/c ($3 × 10,000) $30,000
To Paid in capital in excess of stated value common stock A/c $9,500
(Being the issuance of the common stock is recorded)
On Sep 1
Cash A/c ($7 × 11,500) Dr. $80,500
To Common stock ($3 × 11,500) $34,500
To Paid in capital in excess of stated value common stock A/c $46,000
(Being the issuance of the common stock is recorded)
On Nov 1
Cash A/c ($111 × 2,000) Dr. $222,000
To Preferred stock A/c ($100 × 2,000) $200,000
To Paid in capital in excess of par-preferred stock A/c $22,000
(Being the issuance of the preferred stock is recorded)
