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Horace Company had the following transactions during 2016, its first year of business.
a. Issued 4,000 shares of $5 par common stock for cash at $10 per share.
b. Issued 7,500 shares of common stock on May 1 to acquire a factory building from Barkley Company. Barkley had acquired the building in 2012 at a price of $87,500. Horace estimated that the building was worth $112,500 on May 1, 2016.
c. Issued 2,000 shares of stock on June 1 to acquire a patent. The accountant has been unable to estimate the value of the patent but has determined that Horace's common stock was selling at $20 per share on June 1.
Required:
1. Record an entry for each transaction.
2. Determine the balance sheet amounts for common stock and additional paid-in capital.
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