Pronghorn Corp. was organized on January 1, 2022. It is authorized to issue 19,800 shares of...

90.2K

Verified Solution

Question

Accounting

Pronghorn Corp. was organized on January 1, 2022. It isauthorized to issue 19,800 shares of 7%, $50 par value preferredstock and 462,000 shares of no-par common stock with a stated valueof $1 per share. The following stock transactions were completedduring the first year. Jan. 10 Issued 71,000 shares of common stockfor cash at $5 per share. Mar. 1 Issued 1,220 shares of preferredstock for cash at $56 per share. May 1 Issued 116,000 shares ofcommon stock for cash at $8 per share. Sept. 1 Issued 5,200 sharesof common stock for cash at $6 per share. Nov. 1 Issued 3,200shares of preferred stock for cash at $58 per share.
Journalize the transactions.
Post to the stockholders’ equity accounts.
Prepare the paid-in capital portion of the stockholders’ equitysection at December 31, 2022.

Answer & Explanation Solved by verified expert

4.4 Ratings (889 Votes)

Solution Requirement A Journal Entries Date Account Titles and Explanation Debit Credit Jan102022 Cash 355000 Common stock 71000 PaidInCapital in Excess of Par Common Stock 284000 Being Common Stock Issued Mar12022 Cash 68320 Preferred Stock 61000 PaidInCapital in Excess of Par See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member