Franco Corporation was organized on January 1, 2010. It is authorized to issue 10,000 shares of 8%, $100 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 $4 per share. |
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Mar. 1 |
Issued 5,000 shares of preferred stock for cash at $105 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 market value of the land was $85,000. |
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May 1 |
Issued 80,000 shares of common stock for cash at $4.50 per share. |
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Aug. 1 |
Issued 10,000 shares of common stock to attorneys in payment of their bill of $30,000 for services provided in helping the company organize. |
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Sept. 1 |
Issued 10,000 shares of common stock for cash at $5 per share. |
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Nov. 1 |
Issued 1,000 shares of preferred stock for cash at $109 per share. |
Instructions
(a) Journalize the transactions.
(b) Post to the stockholders’ equity accounts. (Use J5 as the posting reference.)
(c) Prepare the paid in capital section of stockholders’ equity at December 31, 2010.