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Hayslett Corp

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.

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.

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