Nilson Company is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders' equity during its first year of operations.
a.
Cash................................................................ 60,000
Common stock, $1 Par Value................. 1,500
Paid-In Capital in Excess of
Par Value, Common Stock..................... 58,000
b.
Organization Expenses................................ 20,000
Common stock, $1 Par Value................. 500
Paid-In Capital in Excess of
Par Value, Common Stock..................... 19,500
c.
Cash................................................................. 6,650
Accounts Receivable........................................ 4,000
Building.............................................................. 12,500
Notes Payable................................... 3,150
Common Stock, $1 Par Value........ 400
Paid-In Capital in Excess of
Par Value, Common Stock........... 19,600
d.
Cash................................................................ 30,000
Common Stock, $1 Par Value................. 600
Paid-In Capital Excess of
Par Value, Common Stock............ 29,400
REQUIRED
1. Explain the transaction(s) underlying each journal entry (a) through (d).