A Corporation Received Its Charter and Began Business This Year

question 132

Essay

A corporation received its charter and began business this year. The company is authorized to issue 50,000 shares of $100 par, 10%, noncumulative, nonparticipating preferred stock and 500,000 shares of no-par common stock. The following selected transactions occurred during this year:
$\begin{array}{|l|l|}\hline \text { Apr. } 5 & \text { Issued } 250 \text { shares of preferred stock for } \$ 104 \text { cash per share } \\\hline \text { June 15 } & \begin{array}{l}\text { Exchanged } 750 \text { shares of common stock for } \$ 15,000 \text { in legal services incurred in } \\\text { the organization of the company. }\end{array} \\\hline\end{array}$ Prepare journal entries to record these transactions.

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Definitions:

Ruffini End Organ

Receptor located deep in the dermis and responding to continuous touch or pressure. Named for Italian histologist Angelo Ruffini (1864–1929).

Pacinian Corpuscle

A type of mechanoreceptor found in the skin and various internal organs that detects pressure and vibration.

Sensory Receptors

Specialized cells or structures in organisms that respond to external stimuli and send signals to the nervous system.

Meissner Corpuscles

Specialized nerve endings in the skin that are sensitive to touch and vibration, especially in hairless areas.