Type PS CS

Issues 10,000 500,000

Par Value 100.00 $ - $
State Value - $ 2.00 $
(a) Journalize the transaction
10-Jan Cash 320000
Common stock 160000
Paid-in capital in excess of state value-common stock 160000
1-Mar Cash 525000
Preferred stock 500000
Paid-in capital in excess of par value-preferred stock 25000
1-Apr Land 85000
Common Stock 48000
Paid-in capital in excess of state value-common stock 37000
1-May Cash 360000
Common Stock 160000
Paid-in capital in excess of state value-common stock 200000
1-Aug Organization Expense 30000
Common Stock 20000
Paid-in capital in excess of state value-common stock 10000
1-Sep Cash 50000
Common stock 20000
Paid-in capital in excess of state value-common stock 30000
1-Nov Cash 109000
Preferred stock 100000
Paid-in capital in excess of par value-preferred stock 9000
(b)
Preferred stock
Date Explanation Ref Debit Credit Balance
1-Mar J5 500000 500000
1-Nov J5 100000 600000 6000
Common stock
Date Explanation Ref Debit Credit Balance
10-Jan J5 160000 160000
4-Jan J5 48000 208000
1-May J5 160000 368000
1-Aug J5 20000 388000
1-Sep J5 20000 408000 204000
Paid-in capital in excess of par value-preferred stock
Date Explanation Ref Debit Credit Balance
1-Mar J5 25000 25000
1-Apr J5 9000 34000
Paid-in capital in excess of state value-common stock
Date Explanation Ref Debit Credit Balance
10-Jan J5 160000 160000
1-Apr J5 37000 197000
1-May J5 200000 397000
1-Aug J5 10000 407000
1-Sep J5 30000 437000

Stockholders'equity
Paid in Capital
Capital Stock
8% preferred stock,100$ par value,10000shares authorized
6000shares issued and outstanding 600,000.00 $
Common stock,no par 2$ stated value,500000 shares authorized
204000 shares issued and outstanding 408,000.00 $
Total Capital stock 1,008,000.00 $
Additional paid-in capital
In excess of par value-preferred stock 34000
In excess of stated value-common stock 437000
Total additional paid-in capital 471,000.00 $
Total paid in capital 1,479,000.00 $
(a)
Treasury Stock 45000
Cash 45000
Cash 12000
Treasury Stock 9000
Paid-in capital from treasury stock 3000
Cash 20000
Treasury stock 18000
Paid-in capital from treasury stock 2000
Cash 6000
Paid-in capital from treasury stock 3000
Treasury stock 9000
Income Summary 30000
Retained Earning 30000
(b)
Paid-in capital from treasury stock
Date Explanation Ref Debit Credit Balance
3000 3000
2000 5000
3000 2000
Treasury stock
Date Explanation Ref Debit Credit Balance
45000 45000
9000 36000
18000 18000
9000 9000
Retained Earning
Date Explanation Ref Debit Credit Balance
Balance 100000 100000
30000 130000

Stockholder's equity
Paid in Capital
Common stock,5$ par,100000 shares issued 500000
Additional paid-in capital
In excess of par value 200000
from treasury stock 2000
Total additional paid-in capital 202000
Total paid-in capital 702000
Retained earning 130000
Total paid-in capital and retained earning 832000
Less: Treasury stock (1000 common shares,at cost 9000
Total stockholder's equity 823000