Reference no: EM131818481

Question - Recording the Issuance of Common and Preferred Stock

Abernathy Corporation was organized on January 1, 2012. It is authorized to issue 10,000 shares of 8%, $50 par value preferred stock, and 500,000 shares of non-par common stock with a stated value of $2 per share. The following stock transaction were completed during the first year.

Jan. 10 Issued 80,000 shares of common stock for cash at $5 per share.

Mar. 1 Issued 5,000 shares of preferred stock for cash at $108 per share.

Apr. 1 Issued 24,000 shares of common stock for land. The asking price of the land was $90,000; the fair value of the land was $80,000.

May 1 Issued 80,000 shares of common stock for cash at $7 per share.

Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize.

Sep 1 Issued 10,000 shares of common stock for cash at $9 per share.

Nov. 1 Issued 1,000 shares of preferred stock for cash at $112 per share.

Please prepare the journal entries to record the above transactions.