problem: Garner Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. During 2008, its 1st year of operation, the firm has following stock transactions.
|
Jan.
|
1
|
Paid the state $2,000 for incorporation fees.
|
|
Jan.
|
15
|
Issued 500,000 shares of stock at $7 per share.
|
|
Jan.
|
30
|
Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $8,000.
|
|
July
|
2
|
Issued 100,000 shares of stock for land.
The land had an asking price of $900,000. The stock is currently selling on a national exchange at $8 per share.
|
|
Sept.
|
5
|
Purchased 15,000 shares of common stock for the treasury at $10 per share.
|
|
Dec.
|
6
|
Sold 11,000 shares of the treasury stock at $11 per share.
|
Instructions
Make Journal entries for the transactions of Garner Corporation.