Issuance of Stock
Response to the following problem:
Brockbank Corporation was organized on July 15, 2009. Record the journal entries for Brockbank to account for the following:
a. The state authorized 30,000 shares of 7% preferred stock ($20 par) and 100,000 shares of no-par common stock.
b. The company gave 6,000 shares of common stock to its attorney in return for her help in incorporating the business. Fees for this work are normally about $18,000.
c. Brockbank Corporation gave 15,000 shares of common stock to an individual who contributed a building worth $50,000.
d. Brockbank Corporation issued 5,000 shares of preferred stock at $25 per share.
e. Peter Brockbank paid $70,000 cash for 30,000 shares of common stock.
f. Another individual donated a $15,000 machine and received 4,000 shares of common stock.
g. The attorney sold all her shares to her brother-in-law for $18,000.