1. A corporation was organized on January 30 of the current year with an authori

1. A corporation was
organized on January 30 of the current year with an authorization of 20000
shares of $4 preferred stock $12 par and 100000 shares of $3 par common
stock.The following selected transactions were
completed during the first year of operations. Journalize the entries to record
the following selected transactions:Jan. 30Issued 15000 shares of common stock at $21
per share for cash.
31Issued 1100 shares of common stock at par to
an attorney in payment of legal fees for organizing the corporation.
Feb. 24Issued 20000 shares of common stock in
exchange for land buildings and equipment with fair market prices of
$55000 $120000 and $45000 respectively.
Mar. 15Issued 2000 shares of preferred stock at $54
for cash.2. A company has 10000
shares of $10 par common stock outstanding.
Present entries to record the following:(a)Purchased 1000 shares of treasury stock at
$13. The treasury stock is accounted
for by the cost method.(b)Sold 500 shares of treasury stock at $15.(c)Purchased equipment for $75000 paying $25000 in cash and issuing 4000
shares of common stock for the equipment.(d)Sold 500 shares of treasury stock at $11.?15?3.A company issued
$2000000 of 30-year 8% callable bonds on April 1 2005 with interest
payable on April 1 and October 1. The
fiscal year of the company is the calendar year. Journalize the entries to record the
following selected transactions:2005Apr. 1Issued the bonds for cash at their face
amount.Oct. 1Paid the interest on the bonds.2009Oct. 1Called the bond issue at 103 the rate
provided in the bond indenture. (Omit
entry for payment of interest.)