Cates Corporation was organized on January 1, 2010. It is authorized to issue 10,000 shares of 8%, $100 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.
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10 |
Issued 60,000 shares of common stock for cash at $3.50 per share. |
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1 |
Issued 5,000 shares of preferred stock for cash at $102 per share. |
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May |
1 |
Issued 90,000 shares of common stock for cash at $4 per share. |
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1 |
Issued 10,000 shares of common stock for cash at $5 per share. |
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1 |
Issued 4,000 shares of preferred stock for cash at $104 per share. |
Instructions
(a) Journalize the transactions.
(b) Post to the stockholders’ equity accounts. (Use T accounts.)
(c) Prepare the paid in capital section of stockholders’ equity at December 31, 2010.