Reference no: EM132630022

Question - Basil Corporation is authorized to issue 900,000 shares of $10 par value common stock, and 200,000 shares of 9%, $100 par value preferred stock. On January 1, 2018, the second year of operations, the retained earnings balance was $80,000. During 2018, the company had the following stock transactions.

Jan. 7 Issued 150,000 shares of common stock at $15 per share.

May. 5 Attorneys for the company accepted 250 shares of common stock as payment for legal services rendered. The legal services are estimated to have a value of $4000

June 1 Issued 10,000 share of preferred a stock at $150 per share.

July 4 Issued 20,000 shares of common stock in exchange for a building. The building was advertised for $200,000. Basil's Corporation's common stock has been actively traded on the stock exchange at $20 per share at the time of the exchange.

Sept. 1 Purchased 10,000 shares of common stock for the treasury at $20 per share.

Oct. 2 Sold 4,000 shares of the treasury stock at $21 per share.

Dec. 20 Sold 4,000 shares of the treasury stock at $12 per share.

Required - Journalize the 2018 transactions for Basil's Corporation.