Question

Bramble Corporation was organized on January 1, 2020. It is authorized to Issue 11,000 shares of 8%, $100 par value preferred stock, and 524,000 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 83,000 shares of common stock for cash at $4 per share.

 Mar. 1 Issued 4,600 shares of preferred stock for cash at $110 per share. 

Apr. 1 Issued 23,000 shares of common stock for land. The asking price of the land was $89,500. The fair value of the land was $86,000. 

May 1 Issued 81,000 shares of common stock for cash at $5.00 per share. 

Aug. 1 Issued 10,500 shares of common stock to attorneys in payment of their bill of $42,000 for services performed in helping the company organize. 

Sept. 1 Issued 10,500 shares of common stock for cash at $5 per share. 

Nov. 1 Issued 3,000 shares of preferred stock for cash at $112 per share.

Answer 1

Working as follows:

Prepare journal entries:

Date	General Journal	Debit	Credit
Jan. 10	Cash (83,000 shares × $4)	$332,000
	Common stock (83,000 shares × $2)		$166,000
	Paid-in capital in excess of par value-Common stock		$166,000
Mar. 01	Cash (4,600 shares × $110)	$506,000
	Preferred stock (4,600 shares × $100)		$460,000
	Paid-in capital in excess of par value-Preferred stock		$46,000
Aprl. 01	Land	$86,000
	Common stock (23,000 shares × $2)		$46,000
	Paid-in capital in excess of par value-Common stock		$40,000
May 01	Cash (81,000 shares × $5)	$405,000
	Common stock (81,000 shares × $2)		$162,000
	Paid-in capital in excess of par value-Common stock		$243,000
Aug. 01	Organization expense	$42,000
	Common stock (10,500 shares × $2)		$21,000
	Paid-in capital in excess of par value-Common stock		$21,000
Sep. 01	Cash	$52,500
	Common stock (10,500 shares × $2)		$21,000
	Paid-in capital in excess of par value-Common stock		$31,500
Nov. 01	Cash (3,000 shares × $112)	$336,000
	Preferred stock (3,000 shares × $100)		$300,000
	Paid-in capital in excess of par value-Preferred stock		$36,000

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Prepare T-Accounts as follows:

Common stock
		Jan. 10	$166,000
		Aprl. 01	$46,000
		May 01	$162,000
		Aug. 01	$21,000
		Sept. 01	$21,000
		End. Bal.	$416,000
Paid-in capital in excess of par value-Common stock
		Jan. 10	$166,000
		Aprl. 01	$40,000
		May 01	$243,000
		Aug. 01	$21,000
		Sept. 01	$31,500
		End. Bal.	$501,500
Preferred stock
		Mar 01	$460,000
		Nov 01	$300,000
		End. Bal.	$760,000
Paid-in capital in excess of par value-Preferred stock
		Mar 01	$46,000
		Nov 01	$36,000
		End. Bal.	$82,000

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Prepare partial balance sheet as follows:

Bramble Corp.
Balance Sheet (partial)
As of December 31, 2020
Stockholders' Equity
8% Preferred stock issued at par $100 per share	$760,000
Common stock issued at par $2 per share	$416,000
Total capital stock		$1,176,000
Additional paid-in capital:
Paid-in capital in excess of par value-Common stock	$501,500
Paid-in capital in excess of par value-Preferred stock	$82,000
Total Additional paid-in capital		$583,500
Total stockholders' equity		$1,759,500