Explore BrainMass
Share

Explore BrainMass

    Hayslett Corp

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Hayslett Corp was organized on Jan. 1,2006. It is authorized to issue 20,000 shares of 6%m $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
    march 1-issued 10,000 shares of preferred stock for cash at $55 per share
    april 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.
    c. prepare the paid in capital section of stockholders equity at dec. 31, 2006.

    © BrainMass Inc. brainmass.com May 20, 2020, 3:02 pm ad1c9bdddf
    https://brainmass.com/business/working-capital-management/hayslett-corp-111744

    Solution Preview

    Hayslett Corp was organized on Jan. 1,2006. It is authorized to issue 20,000 shares of 6%m $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
    march 1-issued 10,000 shares of preferred stock for cash at $55 per share
    april 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- ...

    Solution Summary

    This solution is comprised of a detailed explanation to journalize the transactions, post to the stockholders equity accounts, and prepare the paid in capital section of stockholders equity at Dec. 31, 2006.

    $2.19

    ADVERTISEMENT