Case Scenario: Hayslett Corp was organized on Jan. 1,2006. It is authorized to issue 20,000 shares of 6%m $50 par value preferred stock, and 500,000 shares of no par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.
jan 10-issued 100,000 shares of common stock for cash at $3 per share
march 1-issued 10,000 shares of preferred stock for cash at $55 per share
april 1-issued 25,000 shares of common stock for land. the asking price of the land was $90,000. the company's estimate of the fair market value of the land was $85,000.
may 1- issued 75,000 shares of common stock for cash at $4 per share
aug 1-issued 10,000 shares of common stock to attorneys in payment of their bill for $50,000 for services provided in helping the company organize.
sept 1- issued 5,000 shares of common stock for cash at $6 per share
nov 1- issued 2,000 shares of preferred stock for cash at $58 per share
Instructions:
1. journalize the transactions
2. post to the stockholders equity accounts.
3. prepare the paid in capital section of stockholders equity at dec. 31, 2006.