(Recording the Issuance of Common and Preferred Stock) Kathleen Battle Corporation was organized on January 1, 2014. 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 $1 per share. The following stock transactions were completed during the first year.
Jan. 10 Issued 80,000 shares of common stock for cash at $5 per share.
Mar.1 Issued 5,000 shares of preferred stock for cash at $108 per share.
Apr. 1 Issued24, 000shares of common stock for land. The asking price of the land was$90,000; the fair value of the land was $80,000.
May1 Issued 80,000 shares of common stock for cash at $7 per share.
Aug.1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organizes.
Sept. 1 Issued 10,000 shares of common stock for cash at $9 per share.
Nov.1 Issued 1,000 shares of preferred stock for cash at $112 per share.
Instructions
Prepare the journal entries to record the above transactions