Kathleen Battle Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.
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Jan.
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10
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Issued 80,000 shares of common stock for cash at $5 per share.
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Mar.
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1
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Issued 5,000 shares of preferred stock for cash at $108 per share.
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Apr.
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1
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Issued 24,000 shares of common stock for land. The asking price of the land was $90,000; the fair value of the land was $80,000.
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May
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1
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Issued 80,000 shares of common stock for cash at $7 per share.
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Aug.
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1
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Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize.
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Sept.
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1
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Issued 10,000 shares of common stock for cash at $9 per share.
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Nov.
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1
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Issued 1,000 shares of preferred stock for cash at $112 per share.
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Instructions
Prepare the journal entries to record the above transactions.