Reference no: EM132796156

Problem 1: Journalize the transactions.

Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 50,000 shares of preferred 2% stock, $60 par and 1,000,000 shares of $8 par common stock.

The following selected transactions were completed during the first year of operations:

1. Feb. 5. Issued 700,000 shares of common stock at par for cash.
2. 5. Issued 1,200 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
3. Apr. 9. Issued 40,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $120,000, $280,000, and $80,000, respectively.
4. June 14. Issued 25,000 shares of preferred stock at $82 for cash.