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EXERCISE 14­1 (a) Jan. 10 350,000 July 1 200,000  120,000 (b) Jan.

 10  70,000 280,000 July 1  40,000 280,000 EXERCISE 14­2 Mar.  2   5,000  25,000 June 12 Organization Expense.................................. Common Stock (5,000 X $1)................. Paid­in Capital in Excess of Par   Value—Common Stock..................... Cash............................................................... 375,000  30,000 Cash (70,000 X $5).................................. Common Stock............................... Cash (40,000 X $8).................................. Common Stock (40,000 X $5)......... Paid­in Capital in Excess of   Par Value (40,000 X $3)............... Cash (70,000 X $5).................................. Common Stock (70,000 X $1)......... Paid­in Capital in Excess of   Stated Value (70,000 X $4).......... Cash (40,000 X $8).................................. Common Stock (40,000 X $1)......... Paid­in Capital in Excess of   Stated Value (40,000 X $7).......... 320,000 350,000 350,000

320,000

 60,000 315,000 July 11 100,000   10,000

Common Stock (60,000 X $1)............... Paid­in Capital in Excess of Par   Value—Common Stock..................... Cash (1,000 X $110)....................................... Preferred Stock (1,000 X $100)............. Paid­in Capital in Excess of Par   Value—Preferred Stock.....................   (1,000 X $10) 110,000

EXERCISE 14­2 (Continued) Nov. 28  80,000 Treasury Stock............................................... Cash........................................................  80,000

PROBLEM 14­4B (a) Feb.  1 100,000  25,000 Mar.  1 50,000  15,000 July  1  80,000 32,000 Sept. 1  20,000 Land......................................................... Preferred Stock (2,000 X $50)........ Paid­in Capital in Excess of   Par Value—Preferred Stock.......   ($125,000 – $100,000) Cash (1,000 X $65).................................. Preferred Stock (1,000 X $50)........ Paid­in Capital in Excess of   Par Value—Preferred Stock.......   (1,000 X $15) Cash (16,000 X $7).................................. Common Stock (16,000 X $5)......... Paid­in Capital in Excess of   Par Value—Common Stock........   ($112,000 – $80,000) Patent (400 X $65).................................. Preferred Stock (400 X $50)........... Paid­in Capital in Excess of  26,000 112,000 65,000 125,000

 6,000 Dec.  1  40,000  20,000 Dec. 31 260,000

  Par Value—Preferred Stock.......   (400 X $15) Cash (8,000 X $7.50)............................... Common Stock (8,000 X $5).......... Paid­in Capital in Excess of   Par Value—Common Stock........   ($60,000 – $40,000) Income Summary................................... Retained Earnings.......................... 260,000 60,000

PROBLEM 14­4B (Continued) (b) Preferred Stock Date Explanation Jan. 1 Balance Feb. 1 Mar. 1 Sept. 1 Common Stock Date Explanation Jan. 1 Balance July 1 Dec. 1 Ref.  J2 J2 J2 Debit Credit 100,000 50,000 20,000 Balance 500,000 600,000 650,000 670,000

Ref.  J2 J2

Debit

Credit 80,000 40,000

Balance 350,000 430,000 470,000

Paid­in Capital in Excess of Par Value—Preferred Stock Date Explanation Ref. Debit Credit Jan. 1 Balance  Feb. 1 J2 25,000 Mar. 1 J2 15,000 Sept. 1 J2   6,000 Paid­in Capital in Excess of Par Value—Common Stock Date Explanation Ref. Debit Credit Jan. 1 Balance  July 1 J2 32,000 Dec. 1 J2 20,000

Balance  75,000 100,000 115,000 121,000

Balance 700,000 732,000 752,000

PROBLEM 14­4B (Continued) Retained Earnings Date Explanation Jan.  1 Balance Dec. 31 (c) Ref.  J2 Debit Credit 260,000 Balance 300,000 560,000

SASSER CORPORATION

Stockholders’ equity Paid­in capital Capital stock 10% Preferred stock,   $50 par value,   20,000 shares authorized,   13,400 shares issued.............. 670,000 Common stock, $5 par value,   125,000 shares authorized,   94,000 shares issued.............. 470,000 Total capital stock............... 1,140,000 Additional paid­in capital In excess of par value—   preferred.................................. In excess of par value—   common................................... Total additional paid­in   capital............................... 873,000 Total paid­in capital............ 2,013,000 Retained earnings...................................... 560,000 Total stockholders’   equity............................... $2,573,000

$  

     

$121,000   752,000      

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