Presented below is information related to Wyrick Company:
(a) 8,000 shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $300,000. The board establishes a stated value of $5 a share for the common stock.
(b) The company issues 100 shares of common stock to its attorneys for costs associated with starting the company. At that time, the company stock was selling at $60 per share. Use the $5 stated value in this transaction.
Instructions:
Prepare the general journal entries necessary to record these transactions.