On 2009 January 1, Cowling Company was authorized to issue 500,000 shares of USD 5 par value common stock. It then completed the following transactions:
2009
Jan. 14 Issued 90,000 shares of common stock at USD 24 per share for cash. 29 Gave the promoters of the corporation 50,000 shares of common stock for their services in organizing the company. The board of directors valued these services at USD 620,000.
Feb. 19 Exchanged 100,000 shares of common stock for the following assets at the indicated fair market values:
|
Equipment |
USD 180,000 |
|
Building |
440,000 |
|
Land |
600,000 |
a. Prepare general journal entries to record the transactions.
b. Prepare the balance sheet of the company as of 2009 March 1.