Answer:
a. Posting to the Stockholders' Equity Accounts:
Common Stock Account
Date Account Titles Debit Credit
Jan.10 Cash $231,000
Apr. 1 Land $75,000
May 1 Cash $229,500
Aug. 1 Attorney Fees $36,000
Sep. 1 Cash $36,000
Dec. 31 Balance $607,500
Additional Paid-up Capital - Common Stock Account
Date Account Titles Debit Credit
Jan.10 Cash $231,000
Apr. 1 Land $13,000
May 1 Cash $172,125
Aug. 1 Attorneys Fees $8,000
Sep. 1 Cash $48,000
Dec. 31 Balance $472,125
Preferred Stock Account
Date Account Titles Debit Credit
Mar. 1 Cash $550,000
Nov. 1 Cash $300,000
Dec. 31 Balance $850,000
Additional Paid-up Capital - Preferred Stock
Date Account Titles Debit Credit
Mar. 1 Cash $55,000
Nov. 1 Cash $36,000
Dec. 31 Balance $91,000
Paid-in Capital Section of the Stockholders' Equity at December 31, 2020:
202,500 shares of Common Stock at $3 per share $607,500
8,500 shares of Preferred Stock at $100 per share 850,000
Additional Paid-in Capital:
Common Stock 472,125
Preferred Stock 91,000
Total Paid-in Capital $2,020,625
Explanation:
a) Data and Calculations:
Authorized shares:
8%, $100 par value preferred stock = 12,000 shares
No-par common stock with stated value of $3 per share = 462,000
Common Stock Shares Issued:
Jan.10 Issued 77,000 shares
Apr.1 Issued 25,000 shares
May.1 Issued 76,500 shares
Aug.1 Issued 12,000 shares
Sept.1 Issued 12,000 shares
Total issued 202,500 shares
Preferred Stock Shares Issued:
Mar.1 Issued 5,500 shares
Nov.1 Issued 3,000 shares
Total issued 8,500 shares
