Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

OURCES olving Problem 11-1A Tamarisk, Inc. was organized on January 1, 2019. It is authorized to issue 11,000 shares of $100 par value preferred stock,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
OURCES olving Problem 11-1A Tamarisk, Inc. was organized on January 1, 2019. It is authorized to issue 11,000 shares of $100 par value preferred stock, and 498,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year: How Jan. 10 Issued 75,500 shares of common stock for cash at $4 per share Mar. 1 Issued 5,550 shares of preferred stock for cash at $105 per share Apr, 1 Issued 24,500 shares of common stock for land. The asking price of the land was $85,500. The fair value of the land was $85,500 May 1 Issued 75,500 shares of common stock for cash at $4.75 per share. Aug. 1 Issued 11 500 shares of common stock to attorneys in payment of their bill of $40,000 for services performed in helping the company organize Sept. 1 Issued 11,000 shares of common stock for cash at $7 per share. Nov. 1 Issued 2,500 shares of preferred stock for cash at $108 per share. Study Date Debit Credit Account Titles and Explanation Cash Jan. 10 302000 Common Stock 151000 Paid-in Capital in Excess of stated Value-Comn 151000 Mar. 1 Cash 582750 Preferred Stock 555000 Paid-in Capital in Excess of Par-Common Stock 27750 Apr. 1 Land 85500 Common Stock 49000 Paid-in Capital in Excess of Stated Value-Com 36500 May 1 Cash 358625 Common Stock 151000 207625 Paid-in Capital in Excess of Stated Value.Com Organization Expense Aug. 1 40000 COMO DUCK Paid-in Capital in Excess of stated Value-Comn 36500 May 1 v Cash 358625 Common Stock 151000 Paid-in Capital in Excess of Stated Value-Comn 207625 Aug. 1 y Organization Expense 40000 Common Stock 23000 Paid-in Capital in Excess of stated Value-Comn 17000 Sept. 1 Organization Expense 77000 Common Stock 22000 55000 Paid-in Capital in Excess of Stated Value-Comn Nov. 1 y Cash 270000 Preferred Stock 250000 Paid-in Capital in Excess of Par-Preferred stoel 20000 SHOW SOLUTION Preferred Stock Mar. Nov.1 250000 Dec.31 Bal. Paid-in Capital in Excess of Par Value-Preferred Stock Mar. 1 Common Stock

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of External Auditing

Authors: Brenda Porter, Jon Simon, David Hatherly

2nd Edition

470842973, 470842970, 978-0470842973

More Books

Students also viewed these Accounting questions

Question

(1), 4761.

Answered: 1 week ago