Tidwell Corporation was organized on January 1, 2014. It is authorized to issue 20,000 shares of 6%, $50 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 70,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 12,000 shares of preferred stock for cash at $53 per share. May 1 Issued 120,000 shares of common stock for cash at $6 per share. Sept. 1 Issued 5,000 shares of common stock for cash at $5 per share. Nov. 1 Issued 3,000 shares of preferred stock for cash at $56 per share. To do;1. Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)2. Post to the stockholders

Tidwell Corporation

a. Journal Entries:

Jan. 10:

Debit Cash Account $280,000

Credit Common Stock $70,000

Credit APIC - Common Stock $210,000

To record the issue of 70,000 common stock shares at $4 per share.

Mar. 1:

Debit Cash Account $636,000

Credit Preferred Stock $600,000

Credit APIC -Preferred Stock $36,000

To record the issue of 12,000 preferred stock at $53 per share.

May 1:

Debit Cash Account $720,000

Credit Common Stock $120,000

Credit APIC - Common Stock $600,000

To record the issue of 120,000 common stock shares at $6 per share.

Sept. 1:

Debit Cash Account $25,000

Credit Common Stock $5,000

Credit APIC - Common sTock $20,000

To record the issue of 5,000 common stock shares at $5 per share.

Nov. 1:

Debit Cash Account $168,000

Credit Preferred Stock $150,000

Credit APIC - Preferred Stock $18,000

To record the issue of 3,000 preferred stock shares at $56 per share.

2. Common Stock Account

Date        Account Titles              Debit       Credit

Jan. 10    Cash Account                            $70,000

May 1      Cash Account                             120,000

Sept. 1    Cash Account                                 5,000

APIC - Common Stock Account

Date        Account Titles              Debit       Credit

Jan. 10    Cash Account                             $210,000

May 1      Cash Account                              600,000

Sept. 1    Cash Account                                 20,000

Preferred Stock Account

Date        Account Titles              Debit       Credit

Mar. 1      Cash Account                             $600,000

Nov. 1     Cash Account                                 150,000

APIC - Preferred Stock Account

Date        Account Titles              Debit       Credit

Mar. 1      Cash Account                             $36,000

Nov. 1     Cash Account                                 18,000

Explanation:

a) Data and Calculations:

Authorized preferred stock, 6% at $50 par value = 30,000 shares = $1,500,000

Authorized common stock, stated value of $1 per share = 500,000 shares = $500,000

Stock transactions:

Jan. 10 Issued 70,000 shares of common stock for cash at $4 per share (Cash $280,000, Common Stock $70,000, and APIC $210,000)

Mar. 1 Issued 12,000 shares of preferred stock for cash at $53 per share

(Cash $636,000, Preferred Stock $600,000, and APIC $36,000)

May 1 Issued 120,000 shares of common stock for cash at $6 per share.

(Cash $720,000, Common Stock $120,000, and APIC $600,000)

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

(Cash $25,000, Common Stock $5,000, and APIC $20,000)

Nov. 1 Issued 3,000 shares of preferred stock for cash at $56 per share

(Cash $168,000, Preferred Stock $150,000, and APIC $18,000)

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