DeLong Corporation was organized on January 1, 2017. It is authorized to issue 14,500 shares of 8%, $100 par value preferred stock, and 450,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 84,500 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,150 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 23,500 shares of common stock for land. The asking price of the land was $91,000. The fair value of the land was $81,500.May 1 Issued 84,000 shares of common stock for cash at $5.00 per share. Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $39,500 for services performed in helping the company organize. Sept. 1 Issued 11,500 shares of common stock for cash at $7 per share. Nov. 1 Issued 2,000 shares of preferred stock for cash at $111 per share. Journalize the transactions.

Answer and Explanation:

DeLong Corporation

Journal entries

10-Jan

Dr Cash$ 507,000 (84,500*6)

Cr Common Stock $ 253,500(84,500*3)

Cr Paid in Capital in Excess of Stated Value-Common Stock $ 253,500

1-Mar

Dr Cash$ 566,500 (5,150*110)

Cr Preferred Stock $ 515,000(5,150*100)

Cr Paid in Capital in Excess of Par-Preferred Stock $ 51,500

1-Apr

Dr Land$ 81,500

Cr Common Stock $ 47,000(23,500*2)

Cr Paid in Capital in Excess of Stated Value-Common Stock $ 34,500

1-May

Dr Cash$ 420,000 (84,000*5)

Cr Common Stock $ 168,000(84,000*2)

Cr Paid in Capital in Excess of Stated Value-Common Stock $ 252,000

1-Aug

Dr Organization expenses$ 39,500

Cr Common Stock $ 20,000(10,000*2)

Cr Paid in Capital in Excess of Stated Value-Common Stock $ 19,500

1-Sep

Dr Cash$ 80,500 (11,500*7)

Cr Common Stock $ 23,000(11,500*2)

Cr Paid in Capital in Excess of Stated Value-Common Stock $ 57,500

1-Nov

Dr Cash$ 222,000 (2,000*111)

Cr Preferred Stock $ 200,000(2,000*100)

Cr Paid in Capital in Excess of Par-Preferred Stock $ 22,000

this business is a price setter.

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