Question - A corporation was organized on January 30, 20xx with an authorization of 20,000 shares of $3 noncumulative preferred stock, $50 par; and 100,000 shares of $10 par common stock.
The following transactions were completed during the year (2 points each except where indicated):
1. Issued 30,000 shares of common stock at par for cash (1 point).
2. Issued 1,000 shares of common stock at par to an attorney in payment for organizing the corporation.
3. Issued common stock at par in exchange for land, buildings and equipment with fair market values of $50,000, $120,000 and $60,000 respectively.
4. Issued 2,000 shares of preferred stock at $52 a share for cash.
5. Purchased 10,000 shares of treasury stock at $15.
6. Sold 500 shares of treasury stock for $18.
7. Sold an additional 500 shares of treasury stock for $14.
Required: Prepare the journal entries to record the above transactions.