Question

Blue Spruce Corporation was organized on January 1, 2020. It is authorized to issue 12,000 shares of 8%, $100 par value preferred stock, and 462,000 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 77,000 shares of common stock for cash at $6 per share.
Mar.	1		Issued 5,500 shares of preferred stock for cash at $110 per share.
Apr.	1		Issued 25,000 shares of common stock for land. The asking price of the land was $88,000. The fair value of the land was $84,000.
May	1		Issued 76,500 shares of common stock for cash at $5.25 per share.
Aug.	1		Issued 12,000 shares of common stock to attorneys in payment of their bill of $44,000 for services performed in helping the company organize.
Sept.	1		Issued 12,000 shares of common stock for cash at $7 per share.
Nov.	1		Issued 3,000 shares of preferred stock for cash at $112 per share.

Post to the stockholders’ equity accounts.

Prepare the paid-in capital section of stockholders’ equity at December 31, 2020.

Answer 1

Common Stock
		$      2,31,000	Jan-10
		$         75,000	Apr-01
		$      2,29,500	May-01
		$         36,000	Aug-01
		$         36,000	Sep-01
		$      6,07,500	Balance
Paid in Capital in excess of Stated Value - Common Stock
		$      2,31,000	Jan-10
		$            9,000	Apr-01
		$      1,72,125	May-01
		$            8,000	Aug-01
		$         48,000	Sep-01
		$      4,68,125	Balance
Preferred Stock
		$      5,50,000	Mar-01
		$      3,00,000	Nov-01
		$      8,50,000	Balance
Paid in Capital in excess of Par Value - Preferred Stock
		$         55,000	Mar-01
		$         36,000	Nov-01
		$         91,000	Balance

Stockholders Equity
Paid in Capital
Common Stock	$       6,07,500
Preferred Stock	$       8,50,000
Paid in Capital in excess of Stated Value - Common Stock	$       4,68,125
Paid in Capital in excess of Par Value - Preferred Stock	$          91,000
Total Paid in Capital	$    20,16,625