The Rolman Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. In its first year, the company has the following stock transactions.
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Jan. 10 |
Issued 400,000 shares of stock at $8 per share. |
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July 1 |
Issued 100,000 shares of stock for land.The land had an asking price of $900,000.The stock is currently selling on a national exchange at $8.25 per share. |
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Sept. 1 |
Purchased 10,000 shares of common stock for the treasury at $9 per share. |
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Dec. 1 |
Sold 4,000 shares of the treasury stock at $10 per share. |
Instructions
(a) Journalize the transactions.
(b) Prepare the stockholders’ equity section assuming the company had retained earnings of $200,000 at December 31.