70.2K

Verified Solution

Link Copied!

Hello,

In the following question, I am unsure of how to calculate the paid-in capital for the common stock questions when the stocks are no-par. Would you help me with the process of calculating what will be the common stock price and the paid-in capital portion? Take a look at the text book question I am working with and my work thus below. Thank you!

Problems: Set B Journalize stock P11-1B Bennis Corporation was organized on January 1, 2014. It is authorized to issue transactions, post, and 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common prepare paid-in capital stock with a stated value of $1 per share. The following stock transactions were completed section. (LO 2, 47), AP during the first year GLS Jan. 10 Issued 40,000 shares of common stock for cash at $3.60 per share. Mar. 1 Issued 5,000 shares of preferred stock for cash at $102 per share. May 1 Issued 90,000 shares of common stock for cash at $4 per share. Sept. 1 Issued 10,000 shares of common stock for cash at $4.40 per share. Nov. 1 Issued 4,000 shares of preferred stock for cash at $103 per share. Instructions (a) Journalize the transactions. (b) Post to the stockholders' equity accounts. (Use T-accounts.) (c) Tot paid-in capital $1470,000 (c) Prepare the paid-in capital section of stockholders' equity at December 31, 2014. 11-18 Unsure of how to calculate paid-in capital when there is no par for the common stock problems 10-Jan Cash 144,000 Common stock Paid-in capital 1-Mar Cash 510,000 Preferred stock Paid-in capital 500,000 10,000 1-May Cash 360,000 Common stock Paid-in capital 1-Sep Cash 44,000 Common stock Paid-in capital 1-Nov Cash 412,000 Preferred stock Paid-in capital 400,000 12,000

Answer & Explanation Solved by verified expert

See Answer