Answer: Please refer to Explanation
Explanation:
a)
DR Cash $ 50,000
CR Common Stock $23,450
CR Paid in Capital in Excess of Par $26,550
(To record issuance of common stock)
Common Stock = 3,350 shares * $7
= $23,450
Paid in Capital in Excess of Stock = 50,000 - 23,450
= $26,550
b)
DR Cash $ 50,000
CR Common Stock $23,450
CR Paid in Capital in Excess of Stated Value $26,550
(To record issuance of common stock)
Common Stock = 3,350 shares * $7
= $23,450
Paid in Capital in Excess of Stated Value = 50,000 - 23,450
= $26,550
c)
DR Cash $50,000
CR Common Stock $50,000
(To record Issuance of Stock)
d) DR Organizational Expense $ 50,000
CR Common Stock $23,450
CR Paid in Capital in Excess of Par $26,550
(To record payment of Organization Expense with stock)
Common Stock = 3,350 shares * $7
= $23,450
Paid in Capital in Excess of Par = 50,000 - 23,450
= $26,550
e) DR Land $ 50,000
CR Common Stock $23,450
CR Paid in Capital in Excess of Par $26,550
(To record issuance of common stock in Exchange of land)
Common Stock = 3,350 shares * $7
= $23,450
Paid in Capital in Excess of Par = 50,000 - 23,450
= $26,550
