Answer:
DeLong Corporation
Journal Entries:
Jan. 10: Debit Cash $507,000
Credit Common stock $253,500
Credit Additional Paid-in Capital- Common stock $253,500
To record the issue of 84,500 shares at $6 per share.
Mar. 1: Debit Cash $540,750
Credit Preferred stock $515,000
Credit Additional Paid-in Capital - Preferred stock $25,750
To record the issue of 5,150 shares at $105 per share.
Apr. 1 Debit Land $80,500
Debit Loss on Purchase of Land $10,500
Credit Common stock $72,000
Credit Additional Paid-in Capital- Common stock $19,000
To record the issue of 24,000 shares for land.
May 1: Debit Cash $396,625
Credit Common stock $250,500
Credit Additional Paid-in Capital- Common stock $146,125
To record the issue of 11,000 shares at $4.75 per share.
Aug. 1: Debit Attorney Fees $38,500
Credit Common stock $33,000
Credit Additional Paid-in Capital- Common stock $5,500
To record the issue of 11,000 shares for attorney's fees.
Sept. 1: Debit Cash $84,000
Credit Common stock $36,000
Credit Additional Paid-in Capital- Common stock $48,000
To record the issue of 12,000 shares at $7 per share.
Nov. 1: Debit Cash $218,000
Credit Preferred stock $200,000
Credit Additional Paid-in Capital-Preferred stock $18,000
To record the issue of 2,000 shares at $109 per share.
Explanation:
a) Data and Analysis:
January 1, 2017, Authorized Shares:
13,000 shares of 8%, $100 par value Preferred Stock
526,000 shares of no-par Common Stock with a stated value of $3 per share
Jan. 10: Cash $507,000 Common stock $253,500 Additional Paid-in Capital $253,500
Mar. 1: Cash $540,750 Preferred stock $515,000 Additional Paid-in Capital $25,750
Apr. 1 Land $91,000 Common stock $72,000 Additional Paid-in Capital $19,000
May 1: Cash $396,625 Common stock $250,500 Additional Paid-in Capital $146,125
Aug. 1: Attorney Fees $38,500 Common stock $33,000 Additional Paid-in Capital $5,500
Sept. 1: Cash $84,000 Common stock $36,000 Additional Paid-in Capital $48,000
Nov. 1: Cash $218,000 Preferred stock $200,000 Additional Paid-in Capital $18,000
