Question - Alexia Corporation was organized on January 1, 2012. It is authorized to issue 14,000 shares of 8%, $102 par value preferred stock, and 487,800 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 78,600 shares of common stock for cash at $6 per share.
Mar. 1 Issued 4,600 shares of preferred stock for cash at $109 per share.
Apr. 1 Issued 22,100 shares of common stock for land. The asking price of the land was $93,600. The fair value of the land was $86,300.
May 1 Issued 84,800 shares of common stock for cash at $6.70 per share.
Aug. 1 Issued 10,400 shares of common stock to attorneys in payment of their bill of $42,800 for services provided in helping the company organize.
Sept. 1 Issued 11,800 shares of common stock for cash at $8 per share.
Nov. 1 Issued 2,350 shares of preferred stock for cash at $108 per share.
Instructions
(a) Journalize the transactions.
(b) Post to the stockholders' equity accounts. (Use J5 as the posting reference.)
(c) Prepare the paid-in capital section of stockholders' equity at December 31, 2012.