.IIIT-Mobile '5' 12:38 PM L '7 ti :3 73% [E]! CHAPTER 13 I PROBLEMS: SET B P13-1B Mendoza Corporation was organized on January 1, 2017. It is authorized to issue Jr 20,000 shares of 6%, $40 par value preferred stock, and 500,000 shares of no-par common .0! stock with a stated value of $2 per share. The foilowing stock transactions were completed 0' during the rst year. (L Jan. 10 Issued 100,000 shares of common stock for cash at $3 per share. Mar. 1 Issued 10,000 shares of preferred stock for cash at $55 per share. Apr. 1 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. May 1 Issued 75,000 shares of common stock for cash at $4 per share. Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill for $50,000 for services performed 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 $60 per share. Instructions (a) J ournalize 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, 2017. (c P13-ZB Hawthorne Corporation had the following stockholders' equity accounts on J: January 1, 2017: Common Stock ($1 par) $400,000, Paid-in Capital in Excess of Par 31 Common Stock $500,000, and Retained Earnings $100,000. In 2017, the company had the Pi following treasury stock transactions. 5' Mar. 1 Purchased 5,000 shares at $7 per share. a June 1 Sold 1,000 shares at $10 per share. Sept. 1 Sold 2,000 shares at $9 per share. Dec. 1 Sold 1,000 shares at $5 per share. Hawthorne Corporation uses the cost method of accounting for treasury stock. In 2017, the company reported net income of $80,000. Instructions (21) J ournalize the treasury stock transactions, and prepare the closing entry at December 31, 2017, for net income. (b) Open accounts for (1) Paid-in Capital from Treasury Stock, (2) Treasury Stock, and (t (3) Retained Earnings. Post to these accounts using J12 as the posting reference. (c) Prepare the stockholders' equity section for Hawthorne Corporation at December 31, (c 20 17. P13-3B The stockholders' equity accounts of Lore Corporation on January 1, 2017, were Jr as follows. Ill Preferred Stock (10%, $100 par, noncumulative, 5,000 shares authorized) $ 300,000 e: Common Stock ($5 stated value, 300,000 shares authorized) 1,000,000 ( Paid-in Capital in Excess of ParPreferred Stock 20,000 ' Paid-in Capital in Excess of Stated ValueCommon Stock 425,000 Retained Earnings 488,000 Treasury Stock (5,000 common shares) 40,000 During 2017, the corporation had the following transactions and events pertaining to its