please see the attached file for the complet solution.

Instructions
a) Journalize the transactions.
b) Post to the stockholders' equity accounts
c) Prepare the paid-in capital section of stockholders' equity at December 31, 2006.

Jan. 10 Cash 300,000
Common Stock 200,000
Additional Paid-in Capital 100,000

Mar. 1 Cash 550,000
Preferred Stock 500,000
Additional Paid-in Capital 50,000

Apr. 1 Land 85,000
Common Stock 50,000
Additional Paid-in Capital 35,000
May 1 Cash 300,000
Common Stock 150,000
Additional Paid-in Capital 150,000

Aug. 1 Accounts Payable 50,000
Common Stock 20,000
Additional Paid-in Capital 30,000

Sept. 1 Cash 30,000
Common Stock 10,000
Additional Paid-in Capital 20,000

Nov. 1 Cash 116,000
Preferred Stock 100,000
Additional Paid-in Capital 16,000

Common Stock
Date Debit Credit Balance

Jan. 10 200,000 200,000
Apr. 1 50,000 250,000
May 1 150,000 400,000
Aug. 1 20,000 420,000
Sept. 1 10,000 430,000

Additional Paid-in Capital
Date Debit Credit Balance

Jan. 10 100,000 100,000
Mar. 1 50,000 150,000
Apr. 1 35,000 185,000
May 1 150,000 335,000
Aug. 1 30,000 365,000
Sept. 1 20,000 385,000
Nov. 1 16,000 401,000

Preferred Stock
Date Debit Credit Balance

Mar. 1 500,000 500,000
Nov. 1 100,000 600,000

Common stock, $2 stated value, 500,000 shares
authorized, 215,000 shares issued 430,000
Preferred stock, 6%, $50 par value, 20,000 shares
authorized, 12,000 shares issued 600,000
Additional Paid-in Capital 401,000
Total paid-in capital 1,431,000