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Prepare journal entries to record transactions for ab corp

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Reference no: EM132698506

AB Corporation was organized on January 1, 2019. It is authorized to issue 10,000 shares of 8%, P50 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of P2 per share. The following stock transactions were completed during the first year.

Jan. 10 Issued 80,000 shares of common stock for cash at P5 per share.

Mar. 1 Issued 5,000 shares of preferred stock for cash at P108 per share.

Apr. 1 Issued 24,000 shares of common stock for land. The asking price of the land was P90, 000; the fair value of the land was P80, 000.

May 1 Issued 80,000 shares of common stock for cash at P7 per share.

Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of P50, 000 for services rendered in helping the company organize.

Sept. 1 Issued 10,000 shares of common stock for cash at P9 per share.

Nov. 1 Issued 1,000 shares of preferred stock for cash at P112 per share.

Instructions:

Problem 1: Prepare the journal entries to record the above transactions.

Reference no: EM132698506

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