Stellar Corporation was organized on January 1, 2020. It is authorized to issue 9,100 shares of 8%, $100 par value preferred stock, and 525,800 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 80,170 shares of common stock for cash at $6 per share.
Mar. 1 Issued 5,410 shares of preferred stock for cash at $112 per share.
Apr. 1 Issued 24,730 shares of common stock for land. The asking price of the land was $91,570; the fair value of the land was $80,170.
May 1 Issued 80,170 shares of common stock for cash at $9 per share.
Aug. 1 Issued 9,100 shares of common stock to attorneys in payment of their bill of $50,100 for services rendered in helping the company organize.
Sept. 1 Issued 9,100 shares of common stock for cash at $11 per share.
Nov. 1 Issued 1,010 shares of preferred stock for cash at $106 per share.

Required:
Prepare the journal entries to record the above transactions.

Jan-10

Dr Cash $ 481,020

Cr Common stock $ 80,170

Cr Additional paid in capital in excess of stated value - Common stock $ 400,850

Mar-01

Dr Cash $ 605,920

Cr Preferred stock $ 541,000

Cr Additional paid in capital in excess of par value - Preferred stock $ 64,920

Apr-01

Dr Land$ 80,170

Cr Common stock $ 24,730

Cr Additional paid in capital in excess of stated value - Common stock $55,440

May-01

Dr Cash $ 721,530

Cr Common stock $ 80,170

Cr Additional paid in capital in excess of stated value - Common stock $ 641,360

Aug-01

Dr Incorporation charges / Legal charges$ 50,100

Cr Common stock $ 9,100

Cr Additional paid in capital in excess of stated value - Common stock $ 41,000

Sep-01

Dr Cash $ 100,100

Cr Common stock $ 9,100

Cr Additional paid in capital in excess of stated value - Common stock $ 91,000

Nov-01

Dr Cash $ 107, 060

Cr Preferred stock $ 101,000

Cr Additional paid in capital in excess of par value - Preferred stock $ 6,060

Explanation:

Preparation of Journal entries

Jan-10

Dr Cash (80,170 * $6)$ 481,020

Cr Common stock (80,170*$1) $ 80,170

Cr Additional paid in capital in excess of stated value - Common stock $ 400,850

(481,020-80,170)

Mar-01

Dr Cash (5,410*$112)$ 605,920

Cr Preferred stock (5,410*$100) $ 541,000

Cr Additional paid in capital in excess of par value - Preferred stock $ 64,920

(605,920-541,000)

Apr-01

Dr Land$ 80,170

Cr Common stock (24,730*$1) $ 24,730

Cr Additional paid in capital in excess of stated value - Common stock $55,440

(80,170-24,730)

May-01

Dr Cash (80,170 * $9)$ 721,530

Cr Common stock (80,170*$1) $ 80,170

Cr Additional paid in capital in excess of stated value - Common stock $ 641,360

(721,530-80,170)

Aug-01

Dr Incorporation charges / Legal charges$ 50,100

Cr Common stock (9,100*$1) $ 9,100

Cr Additional paid in capital in excess of stated value - Common stock $ 41,000

(50,100-9,100)

Sep-01

Dr Cash (9,100 * $11)$ 100,100

Cr Common stock (9,100*$1) $ 9,100

Cr Additional paid in capital in excess of stated value - Common stock $ 91,000

(100,100-9,100)

Nov-01

Dr Cash (1,010*$106)$ 107, 060

Cr Preferred stock (1,010*$100) $ 101,000

Cr Additional paid in capital in excess of par value - Preferred stock $ 6,060

(107,060-101,000)

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.