ACC 363 P 12-1A Hayslett Corporation was organized on January 1, 2006. It is authorized to

ACC 363 P 12-1A Hayslett Corporation was organized on January 1, 2006. It is authorized to

Financial Accounting:

Financial Accounting II: Weygandt, Kieso, and Kimmel, 5th Edition

Axia College of University of Phoenix (UoP)

Problem 12-1A Hayslett Corporation was organized on January 1, 2006. It is authorized to issue 20,000 shares of 6%, $50 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.

Jan. 10 Issued 100,000 shares of common stock for cash at $3 per share.

Mar. 1 Issued 10,000 shares of preferred stock for cash at $55 per share.

Apr. 1 Issued 25,000 shares of common stock for land. The asking price of the land was $90,000. The company's estimate of the fair market value of the land was $85,000.

May 1 Issued 75,000 shares of common stock for cash at $4 per share.

Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill for $50,000 for services provided in helping the company organize.

Sept. 1 Issued 5,000 shares of common stock for cash at $6 per share.

Nov. 1 Issued 2,000 shares of preferred stock for cash at $58 per share.

Instructions

(a) Journalize the transactions.

(b) Post to the stockholders' equity accounts. (Use J1 as the posting reference.)

(c) Prepare the paid-in capital section of stockholders' equity at December 31, 2006. SOLUTION