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Accounting Transactions - Hayslett Corporation

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Hayslett Corporation was organized on January 1, 2005. It is authorized to issue 20,000 shares of 6%, $ 50 par value preferred stock and 500,000 shares of no-par 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 $555 per share
Apr 1-Issued 25,000 shares of common stock for land. The asking price of the land was $900,000. The company's estimate of fir market value of the land was $85,00.
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

(A) Journalize the transactions
(B) Post to the stockholders equity accounts
(C) Prepare the paid in capital section of the stockholders equity at December 31, 2005.

Greeve Corporation had the following stockholders equity accounts on January 1, 2005:
Common Stock ($1 par) $400,000, Paid in Capital in Excess of Par Value $500, 000 and Retained Earnings $100,000. In 2005 the company had the following treasury stock transactions:

Mar 1 Purchased 5,000 shares at $7 per share
June 1 Sold 1,000 shares at $10 per share
Sept 1 Sold 2,000 shares at $9 per share
Dec 1 Sold 1,000 shares at $5 per share

Greeve Corporation uses the cost method of accounting for treasury stock. In 2005 the company reported net income of $60,000

(a) Journalize the treasury stock transactions and prepare the closing entry at December 31, 2005 for net income
(b) Open accounts fot (1) Paid in capital from Treasury Stock (2) Treasury Stock and (3) Retained Earnings . Post to these accounts using J12 as the posting refernce.
(c) Prepare the stockholders equity section for Greeve Corporation at December 31, 2005.

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Solution Summary

The solution journalizes a number of entries and transactions for Hayslett Corporation.

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