Chapter 15

# Chapter 15 - SOLUTIONS TO EXERCISES EXERCISE 15-1(a Jan 10...

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SOLUTIONS TO EXERCISES EXERCISE 15-1 (a) Jan. 10 Cash (80,000 X \$6) ................................ 480,000 Common Stock (80,000 X \$5) ........ 400,000 Paid-in Capital in Excess of Par .... 80,000 Mar. 1 Organization Expense .......................... 35,000 Common Stock (5,000 X \$5) .......... 25,000 Paid-in Capital in Excess of Par .... 10,000 July 1 Cash (30,000 X \$8) ................................ 240,000 Common Stock (30,000 X \$5) ........ 150,000 Paid-in Capital in Excess of Par .... 90,000 (30,000 X \$3) Sept. 1 Cash (60,000 X \$10) .............................. 600,000 Common Stock (60,000 X \$5) ........ 300,000 Paid-in Capital in Excess of Par .... 300,000 (60,000 X \$5) (b) Jan. 10 Cash (80,000 X \$6) ................................ 480,000 Common Stock (80,000 X \$3) ........ 240,000 Paid-in Capital in Excess of Stated Value (80,000 X \$3) ......... 240,000 Mar. 1 Organization Expense .......................... 35,000 Common Stock (5,000 X \$3) .......... 15,000 Paid-in Capital in Excess of Stated Value ................................ 20,000 (\$35,000 – \$15,000 or 5,000 X \$4) July 1 Cash (30,000 X \$8) ................................ 240,000 Common Stock (30,000 X \$3) ........ 90,000 Paid-in Capital in Excess of Stated Value (30,000 X \$5) ......... 150,000

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EXERCISE 15-1 (Continued) Sept. 1 Cash (60,000 X \$10) .............................. 600,000 Common Stock (60,000 X \$3) ........ 180,000 Paid-in Capital in Excess of Stated Value (60,000 X \$7) ......... 420,000 EXERCISE 15-2 Jan. 10 Cash (80,000 X \$5) ........................................ 400,000 Common Stock (80,000 X \$1) ................ 80,000 Paid-in Capital in Excess of Stated Value—Common Stock ...................... 320,000 (80,000 X \$4) Mar. 1 Cash (5,000 X \$108) ...................................... 540,000 Preferred Stock (5,000 X \$100) .............. 500,000 Paid-in Capital in Excess of Par Value—Preferred Stock ..................... 40,000 (5,000 X \$8) April 1 Land ............................................................... 80,000 Common Stock (24,000 X \$1) ................ 24,000 Paid-in Capital in Excess of Stated Value—Common Stock ...................... 56,000 (\$80,000 – \$24,000) May 1 Cash (80,000 X \$7) ........................................ 560,000 Common Stock (80,000 X \$1) ................ 80,000 Paid-in Capital in Excess of Stated Value—Common Stock ...................... 480,000 (80,000 X \$6) Aug. 1 Organization Expense .................................. 50,000 Common Stock (10,000 X \$1) ................ 10,000 Paid-in Capital in Excess of Stated Value—Common Stock ...................... 40,000 (\$50,000 – \$10,000)
EXERCISE 15-2 (Continued) Sept. 1 Cash (10,000 X \$9) ........................................ 90,000 Common Stock (10,000 X \$1) ................ 10,000 Paid-in Capital in Excess of Stated Value—Common Stock ...................... 80,000 (10,000 X \$8) Nov. 1 Cash (1,000 X \$112) ...................................... 112,000 Preferred Stock (1,000 X \$100) .............. 100,000 Paid-in Capital in Excess of Par Value—Preferred Stock ..................... 12,000 (1,000 X \$12)

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