Reference no: EM132545777

Question - The LeeGon Company is authorized to issue 600,000 shares of 10 par value common stock. LeeGon's accounting year ends on December 31. The following transactions occurred in 2020, the company's first year of operations:

a. Issued 20,000 shares at 30 per share; received cash.

b. Issued 2,500 shares to attorneys for services in securing the corporate charter and for preliminary legal costs of organizing the corporation. The value of the services was 90,000.

c. Issued 300 shares, valued objectively at 10,000, to the employees instead of paying cash wages.

d. Issued 125,000 shares of stock in exchange for a building valued at 2,950,000 and land valued at ?800,000. The building was originally acquired by the investor for 2,500,000 and has 1,000,000 of accumulated depreciation; the land was originally acquired for 300,000.

Required -

Q1. What is the common stock balance on December 31, 2020?

Q2. What is the amount paid-in capital in excess of par to be reported on LeeGon's balance sheet at December 31, 2020?

Q3. What is the amount of organization expense to be charged against LeeGon's income for 2020?