Reference no: EM132613263
Problem - Swifty Corporation was organized on January 1, 2020. It is authorized to issue 15,000 shares of 8%, $100 par value preferred stock, and 456,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.
Jan. 10 Issued 79,000 shares of common stock for cash at $4 per share.
Mar. 1 Issued 5,000 shares of preferred stock for cash at $110 per share.
Apr. 1 Issued 23,500 shares of common stock for land. The asking price of the land was $94,500. The fair value of the land was $87,500.
May 1 Issued 77,500 shares of common stock for cash at $5.25 per share.
Aug. 1 Issued 11,000 shares of common stock to attorneys in payment of their bill of $45,000 for services performed in helping the company organize.
Sept. 1 Issued 11,000 shares of common stock for cash at $5 per share.
Nov. 1 Issued 2,000 shares of preferred stock for cash at $113 per share.
1. Journalize the transactions
2. Post to the stockholders' equity accounts
a. Preferred Stock
b. Common Stock
c. Paid-in Capital in Excess of Par-Preferred Stock
d. Paid-in Capital in Excess of Stated Value-Common Stock
3. Prepare the paid-in capital section of stockholders' equity at December 31, 2020.