Problem
Mendoza Corporation was organized on January 1, 2017. It is authorized to issue 20,000 shares of 6%, $40 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.
Mar. 1 Issued 10,000 shares of preferred stock for cash at $55 per share.
Apr 1 Issued 25,000 shares of common stock for land. The asking price of the land was $90,000. The company's estimate of fair value of the land was $75,000. 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 performed 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 $60 per share.
Journalize the transactions.
Post to the stockholders' equity accounts. (Use J1 as the posting reference.)
Prepare the paid-in capital section of stockholders' equity at December 31, 2017.