The Holman Hotel Corporation is authorized to issue 1 million shares of $5 par value common stock. In its first year, 2008, the company has the following stock transactions:
Jan. 10 |
Issued 400,000 shares of stock at $8 per share. |
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 |
Sept. 1 |
Purchased 10,000 shares of common stock for the treasury at $9 per share. |
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, 2008.