Proko Corporation was just issued a charter by the state of New York. This charter gives Proko the authority to issue 300,000 shares of $6 par value common stock. Consider the following transactions:
1. Prepare journal entries to record the transactions of Proko Corp. for the month of October.
2. Prepare the Paid-In Capital section of Proko Corporation’s balance sheet at the end of the month.
201X
Oct. 9 Issued 2,150 shares of stock for land and building with fair market value of $17,500 and $18,500, respectively.
14 Accepted subscriptions to 19,600 shares of stock for $250,000 to be paid in two equal installments.
20 Collected first installment on 9,800 shares of common stock subscribed on October 14.
26 Sold 6,000 shares of stock for $82,000.
28 Collected last installment on 9,800 shares of common stock subscribed on October 14 and issued the shares.