Question

Culver Corporation was organized on January 1, 2022. It is authorized to issue 22,800 shares of 6%, $50 par value preferred stock and 468,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year.

Jan.10 Issued 74,000 shares of common stock for cash at $6 per share.
Mar.1 Issued 1,280 shares of preferred stock for cash at $54 per share.
May1 Issued 119,000 shares of common stock for cash at $5 per share.
Sept.1 Issued 5,800 shares of common stock for cash at $4 per share.
Nov.1 Issued 3,800 shares of preferred stock for cash at $60 per share.

Required:
Post to the stockholders' equity accounts.

Answer 1

Answer:

Date        Account title and explanation              Debit          Credit

Jan-10     Cash (74,000*$6)                                $444,000  

                     Common Stock (74,000*$3)                             $222,000

                     Paid in capital in excess of stated value          $222,000

Mar-01     Cash (1,280*$54)                                  $69,120  

                        Preferred Stock (1,280*$50)                           $64,000

                        Paid in capital in excess of par value             $5,120

May-01     Cash (119,000*$5)                                $595,000  

                         Common Stock (119,000*$3)                           $357,000

                         Paid in capital in excess of stated value        $238,000

Sep-01      Cash (5,800*$4)                                   $23,200

                           Common Stock (5,800*$3)                            $17,400

                           Paid in capital in excess of stated value       $5,800

Nov-01       Cash (3,800*$60)                                $228,000  

                            Preferred Stock (3800*$50)                         $190,000

                            Paid in capital in excess of par value           $38,000