Question: Garner Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. During 2008, its 1st year of operation, the firm has following stock transactions.
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Jan.
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1
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Paid the state $2,000 for incorporation fees.
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Jan.
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15
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Issued 500,000 shares of stock at $7 per share.
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Jan.
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30
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Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $8,000.
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July
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2
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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 per share.
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Sept.
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5
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Purchased 15,000 shares of common stock for the treasury at $10 per share.
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Dec.
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6
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Sold 11,000 shares of the treasury stock at $11 per share.
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Instructions
Make Journal entries for the transactions of Garner Corporation.