Reference no: EM132648652

Problem 1: Franklin Corporation was authorized to issue 5,000 shares of $100 par value, 9% preferred stock and 50,000 share of $5 par common stock. Record the following transactions:

1. Issued 10,000 shares of common stock for $12 per share
2. Issued 500 shares of common stock at $11 per share for services rendered in connection with the organization of the company
3. Issued 2,500 shares of common stock for land on which the asking price was $35,000. Market value of the stock was $12. Management wishes to record the land at the market price of the stock.
4. Declared a cash dividend of $.50 per share on the common stock
5. Date of record
6. Paid the cash dividend
7. Issued 1,000 shares of Preferred stock at $110 per share