Problem 13-01A a-c

Swifty Corporation was organized on January 1, 2020. It is authorized to issue 15,000 shares of 8%, $100 par value preferred stock, and 456,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.

Jan.10Issued 79,000 shares of common stock for cash at $4 per share.

Mar.1Issued 5,000 shares of preferred stock for cash at $110 per share.

Apr.1Issued 23,500 shares of common stock for land. The asking price of the land was $94,500. The fair value of the land was $87,500.

May1Issued 77,500 shares of common stock for cash at $5.25 per share.

Aug.1Issued 11,000 shares of common stock to attorneys in payment of their bill of $45,000 for services performed in helping the company organize.

Sept.1Issued 11,000 shares of common stock for cash at $5 per share.

Nov.1Issued 2,000 shares of preferred stock for cash at $113 per share.

1.Journalize the transactions

2.Post to the stockholders' equity accounts

a.Preferred Stock

b.Common Stock

c.Paid-in Capital in Excess of Par-Preferred Stock

d.Paid-in Capital in Excess of Stated Value-Common Stock

3.Prepare the paid-in capital section of stockholders' equity at December 31, 2020.

Problem 13-01A a-c

Swifty Corporation was organized on January 1, 2020. It is authorized to issue 15,000 shares of 8%, $100 par value preferred stock, and 456,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.

Jan.10Issued 79,000 shares of common stock for cash at $4 per share.

Mar.1Issued 5,000 shares of preferred stock for cash at $110 per share.

Apr.1Issued 23,500 shares of common stock for land. The asking price of the land was $94,500. The fair value of the land was $87,500.

May1Issued 77,500 shares of common stock for cash at $5.25 per share.

Aug.1Issued 11,000 shares of common stock to attorneys in payment of their bill of $45,000 for services performed in helping the company organize.

Sept.1Issued 11,000 shares of common stock for cash at $5 per share.

Nov.1Issued 2,000 shares of preferred stock for cash at $113 per share.

1.Journalize the transactions

2.Post to the stockholders' equity accounts

a.Preferred Stock

b.Common Stock

c.Paid-in Capital in Excess of Par-Preferred Stock

d.Paid-in Capital in Excess of Stated Value-Common Stock

3.Prepare the paid-in capital section of stockholders' equity at December 31, 2020.