P11-1B Bennis Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. 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) Prepare the paid-in capital section of stockholders’ equity at December 31, 2014.
P11-1B Bennis Corporation was organized on January 1, 2014. It is authorized to issue
10,000 shares of 8%, $100 par value
stock with a stated value of $1 per share. The following stock transactions were completed
during the first year.
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) Prepare the paid-in capital section of stockholders’ equity at December 31, 2014.
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