atlantic pacific corporation was organized on september 1 2011 245862

Atlantic Pacific Corporation was organized on September 1, 2011, with authorized capital stock of 150,000 shares of 7% cumulative preferred stock with a $40 par value and 1,200,000 shares of no-par common stock with a $2 stated value. During the balance of the year, the following transactions relating to capital stock were completed:

Oct. 1 Received subscriptions for 200,000 shares of common stock at $39, payable $20 down and the balance in two equal installments due November 1 and December 1. On the same date, 17,800 shares of common stock were issued to Alan Williams in exchange for his business. Assets transferred to the corporation were valued as follows: land, $195,000; buildings, $216,000; equipment, $62,000; merchandise, $105,000. Liabilities of the business assumed by the corporation were mortgage payable, $46,000; accounts payable, $14,000; accrued interest on mortgage, $900. The fair value of the net assets is considered to be a reliable reflection of the value of the business; no goodwill is recognized.

3 Received subscriptions for 110,000 shares of preferred stock at $51, payable $21 down and the balance in two equal installments due November 1 and December 1.

Nov. 1 Collected amounts due on this date from all common and preferred stock subscribers.

12 Received subscriptions for 390,000 shares of common stock at $42, payable $20 down and the balance in two equal installments due December 1 and January 1.

Dec. 1 Collected amounts due on this date from all common stock and preferred stock subscribers and issued stock fully paid for.

Instructions:

1. Prepare journal entries to record these transactions.

2. Prepare the Contributed Capital section of stockholders’ equity for the corporation as of December 31, including any equity offsets.

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