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)
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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
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This note was uploaded on 06/05/2010 for the course LO 78778 taught by Professor Losss during the Spring '10 term at Aberystwyth University.

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

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