Answer:
a.
Dr. Cash $180,000
Cr. Common Stock $150,000
Cr. Add-in-Capital excess of par Common stock $30,000
Dr. Cash $255,000
Cr. Preferred Stock $250,000
Cr. Add-in-Capital excess of par Preferred stock $5,000
Dr. Cash $900,000
Cr. Common Stock $600,000
Cr. Add-in-Capital excess of par Common stock $300,000
<u>Stockholders' equity</u>
Common Stock (150,000 + 600,000) $750,000
Preferred Stock $250,000
Add-in-Capital excess of par Common stock $330,000
($30,000 + $300,000)
Add-in-Capital excess of par Preferred stock <u>$5,000 </u>
Total stockholders' equity <u>$1,335,000</u>
Explanation:
a.
Cash receipt = 15,000 x 12 = $180,000
Common stock = 15,000 x 10 = $150,000
Add-in-Capital excess of par Common stock = $180,000 - $150,000 = $30,000
Cash receipt = 5,000 x 51 = $255,000
Common stock = 5,000 x 50 = $250,000
Add-in-Capital excess of par Preferred stock = $255,000 - $250,000 = $5,000
Cash receipt = 60,000 x 15 = $900,000
Common stock = 60,000 x 10 = $600,000
Add-in-Capital excess of par Common stock = $900,000 - $600,000 = $300,000
