DeLong Corp was organized on Jan 1 2014 It is authorized to

DeLong Corp was organized on Jan 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no- par common stock with a stated value of $2 per share. The following stock transactioons 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 of 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 of $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

Instructions: Journalize the transactions

Solution

Jan 10 - 80,000 shs @ $4
DR Cash 320,000 CR Common stock 160,000 CR Paid In Capital, Common 160,000

March 1 - 5,000 shs Preferred @ $105
DR Cash 525,000 CR Preferred stock 500,000 CR PIC, Preferred 25,000

April 1 - 24,000 shs for Land valued at $85,000
DR Land 85,000 CR Common 48,000 CR PIC, Common 37,000

May 1 - 80,000 shs @ 4.50
DR Cash 360,000 CR Common 160,000 CR PIC, Common 200,000

Aug 1 - 10,000 shs for Legal services
DR Organization expense 30,000 CR Common 20,000 CR PIC, Common 10,000

Sept 1 - 10,000 shs @ $5.00
DR Cash 50,000 CR Common 20,000 CR PIC, Common 30,000

Nov 1 - 1,000 shs Prfd @ $109
DR Cash 109,000 CR Preferred 100,000 CR PIC, Preferred 9,000