A Company Is Authorized to Issue 750,000 Shares of $2

question 64

Essay

A company is authorized to issue 750,000 shares of $2 par value common stock. Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:
Jan. 10 Sold 102,000 shares of common stock for $8 cash per share.
15 Exchanged 10,000 shares of common stock for equipment with a market value of $70,000.
Feb. 1 Exchanged 500 shares of common stock for $3,000 of legal services incurred during the company's organization.

---

Definitions:

Fee Schedule

A list of the costs of common services and procedures performed by a physician.

Usual Fees

The standard charges or rates typically applied by professionals, such as doctors or lawyers, for their services.

Third-party Payer

A third-party payer is an entity (usually an insurance company or government agency) that pays medical bills on behalf of the insured individual.

Uncovered Expenses

Costs that are not reimbursed by insurance or other forms of healthcare coverage, often leading to out-of-pocket expenses for patients.