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

Info icon This preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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)
Image of page 2
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)
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon