DeLong Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 per value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.
| Jan. 10 | Issued 80,000 shares of common stock for cash at $4 per share |
| Mar. 1 | Issued 5,000 shares of preferred stock for cash at $105 per share |
| Apr. 1 | Issued 24,000 shares of common stock for land. The asking price of the land was $90,000. The fair value for the land was $85,000. |
| May 1 | Issued 80,000 shares of common stock for cash at $4.50 per share |
| Aug. 1 | Issued 10,000 shares of common stock to attorneys in payment of their bill or $30,000 for services performed in helping the company organize. |
| Sept. 1 | Issued 10,000 shares of common stock for cash at $5 per share |
| Nov. 1 | Issued 1,000 shares of preferred stock for cash at $109 per share |
Instruction
- Journalize the transactions
- Post to the stockholders'equity accounts.
- Prepare the paid-in capital section of stockholders'equity at December 31, 2020.
Solution
a.
DeLong Corporation
Journal Entries
Journal Entries
b.
DeLong Corporation
T-accounts
T-accounts
c.
DeLong Corporation
Balance Sheet (Partial)
Balance Sheet (Partial)
