Horace company had the following transactions during 2010

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Horace Company had the following transactions during 2010, its first year of business. a.Issued 5,000 shares of $5 par common stock for cash at $15 per share. b.Issued 7,000 shares of common stock on May 1 to acquire a factory building from Barkley Company. Barkley had acquired the building in 2006 at a price of $150,000. Horace estimated that the building was worth $175,000 on May 1, 2010. 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 $25 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. Common Stock ? Additional Paid-In Capital account ?

Reference no: EM13609255

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