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.
Jan. 10 Issued 60,000 shares of common stock for cash at $3.50 per share.
Mar. 1 Issued 5,000 shares of preferred stock for cash at $102 per share.
May 1 Issued 90,000 shares of common stock for cash at $4 per share.
Sept. 1 Issued 10,000 shares of common stock for cash at $5 per share.
Nov. 1 Issued 4,000 shares of preferred stock for cash at $104 per share.
(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.
This question was answered on: Jul 11, 2017
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