Bennis Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.

Jan. 10 Issued 40,000 shares of common stock for cash at $3.60 per share.

Mar. 1 Issued 5,000 shares of preferred stock for cash at $102 per share.

May 1 Issued 90,000 shares of common stock for cash at $4 per share.

Sept. 1 Issued 10,000 shares of common stock for cash at $4.40 per share.

Nov. 1 Issued 4,000 shares of preferred stock for cash at $103 per share.

Instructions

(a) Journalize the transactions.

(b) Post to the stockholders’ equity accounts. (Use T-accounts.)

(c) Prepare the paid-in capital section of stockholders’ equity at December 31, 2014.

AppendixLO1