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Assignment
The Magic Envelope Company has been granted a charter from the state of Connecticut authorizing 600,000 shares of common stock and 80,000 shares of preferred stock. Prepare the journal entries for the following transactions:
1/15/2009 Sold 200,000 shares of $1 par common stock to investors at a price of $15 per share.
1/20/2009 Sold 25,000 shares of $100 par 8% preferred stock to investors at a price of $115 per share.
2/1/2009 The company purchased land with 50,000 shares of $1 par common stock. The market value of the land was $800,000
2/22/2009 The company purchased equipment with 1,000 shares of $100 par 8% preferred stock. The market value of the equipment was $175,000.
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