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linda_us, Master's Degree
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Sheldon optics produces medical lasers for use in hospitals.

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Sheldon optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Sheldon Optics on October 31 of the current year as follows
Preferred 2% stock, $80 par(50,000 shares authorized, 25000 shares issued $2,000, 000
Paid in capital in excess of par preferred stock 75, 000
common stock, $100 par (500,000 shares authorized, 50,000 shares issued) 5, 000,000
paid in capital in excess of par common stock 600,000
retained earnings 16,750,000
At the annual stockholders meeting on dec 7, the board of directors presented a plan for modernizing and expanding plant operations at a cost of 5,300,000. The plan provided that on
Jan 10: borrowed $2,000,000 from whitefish National Bank, giving a 7% mortgage note
Jan 21: Issued 15,000 shares of preferred stock, receiving $84.50 per share in cash
Jan 31: Issued 17, 500 shares of common stock in exchange for land and a building, building valued at $1,850,000 and land valued at $162,500
Illustrate the effects on the accounts and financial statements of each of the preceding transactions.

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Edited by Linda on 10/4/2010 at 6:50 PM EST
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Customer: replied 6 years ago.
how did you get the paid in capital in excess of par-preferred stock value on Jna 21 and paid in excess -common stock on jan 31

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