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.