Welles Corporation was organized on January 1, 2014. It is authorized to issue 20,000 shares of 6%, $40 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 Mar. 1 Apr. 1 May 1 Aug. 1 Issued 80,000 shares of common stock for cash at $3 per share.

Issued 10,000 shares of preferred stock for cash at $45 per share.

Issued 25,000 shares of common stock for land. The asking price of the land was

$90,000. The company’s estimate of fair value of the land was $75,000.

Issued 75,000 shares of common stock for cash at $4 per share.

Issued 10,000 shares of common stock to attorneys in payment of their bill for

$44,000 for services provided in helping the company organize.

Sept. 1 Issued 5,000 shares of common stock for cash at $6 per share.
Nov. 1 Issued 2,000 shares of preferred stock for cash at $48 per share.
Instructions

(a) Journalize the transactions.

(b) Post to the stockholders’ equity accounts. (Use J1 as the posting reference.)

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