Gallatin Specialty Advertising was organized on September 1 P.O. 5,4,5 of this year, with a charter providing for authorized capital as follows:

a. 2,000 shares of preferred 7 percent stock, $50 par value

b. 40,000 shares of no-par common stock, $10 stated value During the first year of operations, Gallatin Specialty Advertising completed the following transactions:

Sept. 1 Received subscriptions to 8,000 shares of common stock at $12 per share, collecting 30 percent of the subscription price.

3 Bought equipment from Gallatin, one of the promoters, for $32,000.

Gallatin accepted 3,000 shares of common stock in return for the equipment. (Credit Paid-in Capital in Excess of Stated Value,

$2,000.)

Instructions Check Figure , , . , . , c , 1 1 • Total paid-in capital, $208,800 Record these transactions m general journal form. What is the total paid-m capital?
Instructions for General Ledger Software 1. Record the entries in the general journal.
2. Print the general journal. What is the total paid-in capital?

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Sept. 12 Subscribers to 8,000 shares of common stock paid an additional 30. percent of the subscription price. Oct. 14 Issued 100 shares of common stock to Gallatin at $12 per share in return for promotional services valued at $1,200. 18 Received subscriptions to 800 shares of preferred 7 percent stock at $47 per share, collecting 40 percent of the subscription price. 25 Paid an attorney $4,140 for paying state fees and for performing services needed for incorporating the firm. 29 Subscribers to 8,000 shares of common stock paid the remaining 40 percent of the subscription price, and Gallatin Specialty Advertising then issued the 8,000 shares. 4 Received subscriptions to 3,000 shares of common stock at $14 per share, collecting 50 percent of the subscription price. 9 Subscribers to 800 shares of preferred 7 percent stock paid an addi- tional 30 percent of the subscription price. 30 Subscribers to 3,000 shares of common stock paid the remaining 50 percent of the subscription price, and Gallatin Specialty Advertising issued the 3,000 shares.