Stock transactions, Financial Accounting

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Brazil Corporation was organized on January 1, 1999. It is authorized to issue 20,000 shares of 6%, $50 par value preferred stock, and 500,000 shares of common stock with a par value of $1 per share. The following stock transactions were completed during the first year:

Jan. 10             Issued 100,000 shares of common stock for cash at $3 a share.

Mar. 1             Issued 10,000 shares of preferred stock for cash at $51 per share.

Apr. 1              Issued 25,000 shares of common stock for land. The asking price of the land was $90,000; the company's estimate of fair market value of the land was $85,000.

May 1              Issued 75,000 shares of common stock for cash at $4 per share.

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

Sept. 1             Issued 5,000 shares of common stock for cash at $6 per share.

Nov. 1              Issued 2,000 shares of preferred stock for cash at $53 per share.

 

 


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