Reference no: EM132516702

Question - Martinez Corporation has been authorized to issue 20,500 shares of $100 par value, 10%, preferred stock and 1,084,200 shares of no-par common stock. The corporation assigned a $2.60 stated value to the common stock. At December 31, 2020, the ledger contained the following balances pertaining to stockholders' equity.

Preferred Stock $125,000

Paid-in Capital in Excess of Par-Preferred Stock $15,000

Common Stock $1,084,200

Paid-in Capital in Excess of Stated Value-Common Stock $1,834,800

Treasury Stock (1,160 common shares) $13,920

Paid-in Capital from Treasury Stock $1,740

Retained Earnings $81,500

Accumulated Other Comprehensive Income $62,000

The preferred stock was issued for land having a fair value of $140,000. All common stock issued was for cash. In November, 1,740 shares of common stock were purchased for the treasury at a per share cost of $12. In December, 580 shares of treasury stock were sold for $15 per share. No dividends were declared in 2020.

Required - Prepare the journal entries for the:

(1) Issuance of preferred stock for land.

(2) Issuance of common stock for cash.

(3) Purchase of common treasury stock for cash.

(4) Sale of treasury stock for cash.