2. Determine the balance sheet amounts for common stock and additional paid-in capital.

Common stock	$fill in the blank 5a1dc2f5006df8a_1
Additional paid-in capital	$fill in the blank 5a1dc2f5006df8a_2
Total contributed capital	$fill in the blank 5a1dc2f50

stock Issuance

Horace Company had the following transactions during 2016, its first year of business.

Required:

Question Content Area

1. Record an entry for each transaction.

a. Issued 3,100 shares of $5 par common stock for cash at $15 per share. Indicate the effect on financial statement items by selecting "" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement.

Journal

Balance Sheet

Income Statement

Stockholders

Net

Description

Debit

Credit

Assets

=

Liabilities

+

Equity

Revenues

Expenses

=

Income

Accounts PayableAccounts ReceivableCashInterest ExpenseInterest PayableCash

fill in the blank 54a7f405d034fc2_2

+-NE+

+-NENE

+-NENE

+-NENE

+-NENE

+-NENE

Accounts PayableAccounts ReceivableCashInterest ExpenseCommon StockCommon Stock

fill in the blank 54a7f405d034fc2_10

+-NENE

+-NENE

+-NE+

+-NENE

+-NENE

+-NENE

Accounts PayableAccounts ReceivableCashInterest ExpenseAdditional Paid-In Capital-CommonAdditional Paid-In Capital-Common

fill in the blank 54a7f405d034fc2_18

+-NENE

+-NENE

+-NE+

+-NENE

+-NENE

+-NENE

Question Content Area

b. Issued 7,300 shares of common stock on May 1 to acquire a factory building from Barkley Company. Barkley had acquired the building in 2012 at a price of $150,000. Horace estimated that the building was worth $175,000 on May 1, 2016. Indicate the effect on financial statement items by selecting "" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement.

Journal

Balance Sheet

Income Statement

Stockholders

Net

Description

Debit

Credit

Assets

=

Liabilities

+

Equity

Revenues

Expenses

=

Income

Additional Paid-In Capital-CommonBuildingCashCommon StockStock RevenueBuilding

fill in the blank a646c8f3204204f_2

+-NE+

+-NENE

+-NENE

+-NENE

+-NENE

+-NENE

BuildingCashCommon StockGain on Sale of StockStock RevenueCommon Stock

fill in the blank a646c8f3204204f_10

+-NENE

+-NENE

+-NE+

+-NENE

+-NENE

+-NENE

Additional Paid-In Capital-CommonBuildingCashPatentStock RevenueAdditional Paid-In Capital-Common

fill in the blank a646c8f3204204f_18

+-NENE

+-NENE

+-NE+

+-NENE

+-NENE

+-NENE

Question Content Area

c. Issued 1,900 shares of stock on June 1 to acquire a patent. The accountant has been unable to estimate the value of the patent but has determined that Horace's common stock was selling at $25 per share on June 1. Indicate the effect on financial statement items by selecting "" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement.

Journal

Balance Sheet

Income Statement

Stockholders

Net

Description

Debit

Credit

Assets

=

Liabilities

+

Equity

Revenues

Expenses

=

Income

Additional Paid-In Capital-CommonCashCommon StockPatentStock RevenuePatent

fill in the blank 88c5ccf78fcffea_2

+-NE+

+-NENE

+-NENE

+-NENE

+-NENE

+-NENE

CashCommon StockGain on Sale of StockPatentStock RevenueCommon Stock

fill in the blank 88c5ccf78fcffea_10

+-NENE

+-NENE

+-NE+

+-NENE

+-NENE

+-NENE

Additional Paid-In Capital-CommonBuildingCashPatentStock RevenueAdditional Paid-In Capital-Common

fill in the blank 88c5ccf78fcffea_18

+-NENE

+-NENE

+-NE+

+-NENE

+-NENE

+-NENE

Question Content Area

2. Determine the balance sheet amounts for common stock and additional paid-in capital.

Common stock	$fill in the blank 5a1dc2f5006df8a_1
Additional paid-in capital	$fill in the blank 5a1dc2f5006df8a_2
Total contributed capital	$fill in the blank 5a1dc2f5006df8a_3