Tidwell Corporation was organized on January 1, 2014. It is authorized to issue

Tidwell Corporation

a. Journal Entries:

Jan. 10:

Debit Cash Account $280,000

Credit Common Stock $70,000

Credit APIC - Common Stock $210,000

To record the issue of 70,000 common stock shares at $4 per share.

Mar. 1:

Debit Cash Account $636,000

Credit Preferred Stock $600,000

Credit APIC -Preferred Stock $36,000

To record the issue of 12,000 preferred stock at $53 per share.

May 1:

Debit Cash Account $720,000

Credit Common Stock $120,000

Credit APIC - Common Stock $600,000

To record the issue of 120,000 common stock shares at $6 per share.

Sept. 1:

Debit Cash Account $25,000

Credit Common Stock $5,000

Credit APIC - Common sTock $20,000

To record the issue of 5,000 common stock shares at $5 per share.

Nov. 1:

Debit Cash Account $168,000

Credit Preferred Stock $150,000

Credit APIC - Preferred Stock $18,000

To record the issue of 3,000 preferred stock shares at $56 per share.

2. Common Stock Account

Date        Account Titles              Debit       Credit

Jan. 10    Cash Account                            $70,000

May 1      Cash Account                             120,000

Sept. 1    Cash Account                                 5,000

APIC - Common Stock Account

Date        Account Titles              Debit       Credit

Jan. 10    Cash Account                             $210,000

May 1      Cash Account                              600,000

Sept. 1    Cash Account                                 20,000

Preferred Stock Account

Date        Account Titles              Debit       Credit

Mar. 1      Cash Account                             $600,000

Nov. 1     Cash Account                                 150,000

APIC - Preferred Stock Account

Date        Account Titles              Debit       Credit

Mar. 1      Cash Account                             $36,000

Nov. 1     Cash Account                                 18,000

Explanation:

a) Data and Calculations:

Authorized preferred stock, 6% at $50 par value = 30,000 shares = $1,500,000

Authorized common stock, stated value of $1 per share = 500,000 shares = $500,000

Stock transactions:

Jan. 10 Issued 70,000 shares of common stock for cash at $4 per share (Cash $280,000, Common Stock $70,000, and APIC $210,000)

Mar. 1 Issued 12,000 shares of preferred stock for cash at $53 per share

(Cash $636,000, Preferred Stock $600,000, and APIC $36,000)

May 1 Issued 120,000 shares of common stock for cash at $6 per share.

(Cash $720,000, Common Stock $120,000, and APIC $600,000)

Sept. 1 Issued 5,000 shares of common stock for cash at $5 per share

(Cash $25,000, Common Stock $5,000, and APIC $20,000)

Nov. 1 Issued 3,000 shares of preferred stock for cash at $56 per share

(Cash $168,000, Preferred Stock $150,000, and APIC $18,000)

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Explanation: