Question

Culver Corporation was organized on January 1, 2022. It is authorized to issue 22,800 shares of 6%, $50 par value preferred stock and 468,000 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 74,000 shares of common stock for cash at $6 per share.
Mar.1 Issued 1,280 shares of preferred stock for cash at $54 per share.
May1 Issued 119,000 shares of common stock for cash at $5 per share.
Sept.1 Issued 5,800 shares of common stock for cash at $4 per share.
Nov.1 Issued 3,800 shares of preferred stock for cash at $60 per share.

Required:
Post to the stockholders' equity accounts.

Answer 1

Date Account title and explanation Debit Credit

Jan-10 Cash (74,000*$6) $444,000

Common Stock (74,000*$3) $222,000

Paid in capital in excess of stated value $222,000

Mar-01 Cash (1,280*$54) $69,120

Preferred Stock (1,280*$50) $64,000

Paid in capital in excess of par value $5,120

May-01 Cash (119,000*$5) $595,000

Common Stock (119,000*$3) $357,000

Paid in capital in excess of stated value $238,000

Sep-01 Cash (5,800*$4) $23,200

Common Stock (5,800*$3) $17,400

Paid in capital in excess of stated value $5,800

Nov-01 Cash (3,800*$60) $228,000

Preferred Stock (3800*$50) $190,000

Paid in capital in excess of par value $38,000