Answer:
Tidwell Corporation
a. Journal Entries:
Jan. 10:
Debit Cash Account $280,000
Credit Common Stock $70,000
Credit APIC - Common Stock $210,000
To record the issue of 70,000 common stock shares at $4 per share.
Mar. 1:
Debit Cash Account $636,000
Credit Preferred Stock $600,000
Credit APIC -Preferred Stock $36,000
To record the issue of 12,000 preferred stock at $53 per share.
May 1:
Debit Cash Account $720,000
Credit Common Stock $120,000
Credit APIC - Common Stock $600,000
To record the issue of 120,000 common stock shares at $6 per share.
Sept. 1:
Debit Cash Account $25,000
Credit Common Stock $5,000
Credit APIC - Common sTock $20,000
To record the issue of 5,000 common stock shares at $5 per share.
Nov. 1:
Debit Cash Account $168,000
Credit Preferred Stock $150,000
Credit APIC - Preferred Stock $18,000
To record the issue of 3,000 preferred stock shares at $56 per share.
2. Common Stock Account
Date Account Titles Debit Credit
Jan. 10 Cash Account $70,000
May 1 Cash Account 120,000
Sept. 1 Cash Account 5,000
APIC - Common Stock Account
Date Account Titles Debit Credit
Jan. 10 Cash Account $210,000
May 1 Cash Account 600,000
Sept. 1 Cash Account 20,000
Preferred Stock Account
Date Account Titles Debit Credit
Mar. 1 Cash Account $600,000
Nov. 1 Cash Account 150,000
APIC - Preferred Stock Account
Date Account Titles Debit Credit
Mar. 1 Cash Account $36,000
Nov. 1 Cash Account 18,000
Explanation:
a) Data and Calculations:
Authorized preferred stock, 6% at $50 par value = 30,000 shares = $1,500,000
Authorized common stock, stated value of $1 per share = 500,000 shares = $500,000
Stock transactions:
Jan. 10 Issued 70,000 shares of common stock for cash at $4 per share (Cash $280,000, Common Stock $70,000, and APIC $210,000)
Mar. 1 Issued 12,000 shares of preferred stock for cash at $53 per share
(Cash $636,000, Preferred Stock $600,000, and APIC $36,000)
May 1 Issued 120,000 shares of common stock for cash at $6 per share.
(Cash $720,000, Common Stock $120,000, and APIC $600,000)
Sept. 1 Issued 5,000 shares of common stock for cash at $5 per share
(Cash $25,000, Common Stock $5,000, and APIC $20,000)
Nov. 1 Issued 3,000 shares of preferred stock for cash at $56 per share
(Cash $168,000, Preferred Stock $150,000, and APIC $18,000)
