11-35

Name: SOLUTION Enter the appropriate account titles in the shaded cells in columns D and E. Enter the appropriate amounts in the shaded cells in columns H and J. Journal Entries: Jan. 1 Property Organization Costs Common Stock Issued 500 shares of $1 par common stock in exchange for property and services rendered. Feb. 23 Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Sold 1,000 shares of $100 par preferred stock at $150 per share less $7,500 commission. Mar. 10 Cash Common Stock Paid-In Capital in Excess of Par-Common Sold 3,000 shares of $1 par common stock at $39 per share less issue costs of $2,500. Apr. 10 Common Stock Subscriptions Receivable Common Stock Subscribed Paid-In Capital in Excess of Par-Common Received subscription for 4,000 shares of $1 par common stock at $45 per share. Cash Building Common Stock Paid-In Capital in Excess of Par-Common Preferred Stock Paid-In Capital in Excess of Par-Preferred Sold 600 shares of $1 par common stock at $40 per share and exchanged 700 shares of $1 par common stock and 140 shares of $100 par preferred stock for a building. Cash Common Stock Subscriptions Receivable Common Stock Subscribed Common Stock Collected cash on subscriptions and issued 2,000 shares of $1 par common stock. Dec. 1 Dividends Dividends Payable Declared $10 per share cash dividends on preferred stock. 2,000 2,000 180,000 4,000 176,000 114,500 3,000 111,500

17,000 7,000 7,000

142,500 100,000 42,500

July 14

24,000 51,000 1,300 50,700 14,000 9,000

Aug. 3

140,000 140,000

25,000 25,000

Dec. 31

Dividends Payable Cash Paid $10 per share on preferred stock. Common Stock Subscribed Paid-In Capital in Excess of Par-Common Common Stock Subscriptions Receivable Paid-In Capital from Forfeited Stock Subscriptions Subscribers defaulted on 800 shares previously subscribed for $45 per share. Income Summary Retained Earnings To close Income Summary Stockholders' Equity

11,400 11,400

Dec. 31

800 35,200 30,000 6,000

Dec. 31

60,000 60,000

Contributed capital: Preferred stock, $100 par, convertible, 4,000 shares authorized 1,140 shares issued and outstanding Paid-In Capital in Excess of Par-Preferred Common stock, $1 par, 20,000 shares authorized, 6,800 shares issued and outstanding Common stock subscribed Paid-in capital in excess of par-common Paid-in capital from forfeited stock subscriptions Total contributed capital Retained earnings Total contributed capital and retained earnings Less: Common stock subscriptions receivable Total stockholders' equity

$ 114,000 51,500 6,800 1,200 326,500 6,000 $ 506,000 35,000 $ 541,000 10,000 $ 531,000