Reference no: EM132832766

State Co was organized on June 1, 2020 and is raising money by issuing bonds. The company is authorized to issue 200,000 shares of 4%, no par common stock with a stated value of $2 per share. They are also authorized to issue 50,000 shares of 6%, $50 par value, preferred stock.

The following transactions occurred during the first year of operations.

• 15-Jun-20 Issued 20,000 shares of common stock for cash at $22/share
• 15-Aug-20 Issued 20,000 shares of common stock for cash at $26/share
• 15-Nov-20 Issued 5,000 shares of preferred stock in return for legal services that otherwise would have cost $32,000.
• 1-Jan-21 Issued 60,000 shares of common stock in return for a storage warehouse listed for sale for $400,000 with a FMW of $360,000
• 1-Feb-21 Issued 5,000 shares of preferred stock for cash at $55/share

Instructions

Problem 1: Make the journal entries to record the transactions.