Terrier Company has been authorized to issue 100,000 shares of USD 6 par value common stock and 1,000 shares of 14 percent, cumulative, preferred stock with a par value of USD 12.
a. Prepare the entries for the following transactions that all took place in June 2009:
50,000 shares of common stock are issued for cash at USD 24 per share.
750 shares of preferred stock are issued for cash at USD 18 per share.
1,000 shares of common stock are issued in exchange for legal services received in the incorporation process. The fair market value of the legal services is USD 9,000.
Prepare the paid-in capital section of Terrier’s balance sheet as of June 2009.