(Recording the Issuance of Common and Preferred Stock) Abernathy Corporation was organized on January 1, 2012. It is authorized to issue 10,000 shares of 8%, $50 par value preferred stock, and 500,000 shares of no par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.
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Jan. 10 |
Issued 80,000 shares of common stock for cash at $5 per share. |
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Mar. 1 |
Issued 5,000 shares of preferred stock for cash at $108 per share. |
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Apr. 1 |
Issued 24,000 shares of common stock for land. The asking price of the land was $90,000; the fair value of the land was $80,000. |
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May 1 |
Issued 80,000 shares of common stock for cash at $7 per share. |
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Aug. 1 |
Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize. |
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Sept. 1 |
Issued 10,000 shares of common stock for cash at $9 per share. |
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Nov. 1 |
Issued 1,000 shares of preferred stock for cash at $112 per share. |
Instructions
Prepare the journal entries to record the above transactions.