b 1 Mar Organization Expense 35000 Common Stock 5000 2 10000 Pain in Capital in

# B 1 mar organization expense 35000 common stock 5000

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(b) 1-Mar Organization Expense 35,000 Common Stock (5,000 * \$2) 10,000 Pain in Capital in Excess 25,000 of State Value (\$35,000 - \$10,000)
July 1: Issued 30,000 shares for cash at \$8 per share.(a) - Assume common stock has a par value of \$3 per share (b) - Assume that the common stock is no par value and a stated value of \$2 per share.(b)1-JulCash (30,000 * \$8)240,000Common Stock (30,000 * \$2)60,000Paid in Capital in Excesss of Stated Val,180,000Sept. 1: Issued 60,000 shares for cash at \$10 per share.(a) - Assume common stock has a par value of \$3 per share (b) - Assume that the common stock is no par value and a stated value of \$2 per share.
Exercise 15-2 (Recording the Issuance of Common and Preferred Stock)Abernathy Corporation was organized on January 1, 2010. It is authorized to issue 10,000shares of 8%, \$50 par value preferred stock and 500,000 shares of no par common stock with astated value of \$2 per share. The following stock transactions were completed during the year.###Issued 80,000 shares of common stock for cash at \$5 per share.10-JanCash (80,000 * \$5)\$400,000 Common Stock (80,000 * \$2)160,000Paid in Capital in Excess of Stated Value -Common Stock (80,000 * \$3)240,0001-MarIssued 5,000 shares of preferred stock for cash at \$108 per share.Cash (5,000 * \$108)540,000Preferred Stock (5,000 * \$50)250,000Paid in Capital in Excess of Par Value - Preferred Stock (5,000 * \$58)290,0001-AprIssued 24,000 shares of common stock for land. The asking price of the land was\$90,000 and the fair market value of the land was \$80,000.Land80,000Common Stock (24,000 * \$2)48,000Paid in Capital of Stated Value -Common Stock ( \$80,000 - \$48,000)32,0001-MayIssued 80,000 shares of common stock for cash at \$7 per share.Cash (80,000 * \$7)560,000Common Stock (80,000 * \$2)160,000Paid in Capital in Excess of Stated Value -Common Stock (80,000 * \$5)400,0001-AugIssued 10,000 shares of common stock to attorneys in payment of their bill of \$50,000for services rendered in helping the company organize.

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• Fall '09
• CHERIEABAKER