Problem
Prepare in journal form the entries necessary to record the following stock transactions of the 1. Alexander Inc. was organized and authorized to issue 5,000 shares of $100 par value, 7% percent preferred stock and 50,000 shares of $8 par value common stock on July 1, 2013. July 1 Issued 10,000 shares of common stock at $11 per share July 1 Issued 300 shares of common stock at $11 per share for services rendered in connection with the organization of the company July2 Issued 1,000 shares of preferred stock at par value for cash July 10 Issued 3,000 shares of common stock for land on which the asking price was $75,000. Market value of the stock was $10. Management wishes to record the land at full market value of the stock. Aug 10 Declared a cash dividend for one month on the outstanding preferred stock and $0.02 per share on common stock outstanding, payable on Aug 22 to stockholders of record on Aug 12. Aug 12 Date of record for cash dividends Aug 22 Paid cash dividends.