Discuss common stock and additional paid-in capital

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Reference no: EM131797260

Horace Company had the following transactions during 2016, its first year of business.

a. Issued 4,000 shares of $5 par common stock for cash at $10 per share.

b. Issued 7,500 shares of common stock on May 1 to acquire a factory building from Barkley Company. Barkley had acquired the building in 2012 at a price of $87,500. Horace estimated that the building was worth $112,500 on May 1, 2016.

c. Issued 2,000 shares of stock on June 1 to acquire a patent. The accountant has been unable to estimate the value of the patent but has determined that Horace's common stock was selling at $20 per share on June 1.

Required:

1. Record an entry for each transaction.

2. Determine the balance sheet amounts for common stock and additional paid-in capital.

Reference no: EM131797260

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