Stonehurst Corporation Is Authorized to Issue 100,000 Shares of $5 $\$ 7,000$

question 9

Essay

Stonehurst Corporation is authorized to issue 100,000 shares of $5 stated value common stock and 2,000 shares of $100 par value,6 percent preferred stock.Prepare entries in journal form without explanations to record the following transactions:
July 15 Issued 1,000 shares of common stock to an attorney for a bill of $\$ 7,000$ in connection with the organization of the corporation.
25 Issued 2,000 shares of preferred stock for cash of $\$ 120$ per share.
27 Issued 10,000 shares of common stock in exchange for land for a plant site valued at $\$ 75,000$ .

Aug. 1 Issued 5,000 shares of common stock for $\$ 35,000$ in cash.

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Definitions:

Consumer Debt

Financial obligations incurred by individuals primarily for personal, family, or household purposes, including credits cards, mortgages, and personal loans.

Credit Score

A numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of the individual.

Reaffirmation Agreement

An agreement in which a debtor agrees to pay a debt even though it could have been discharged in bankruptcy.

Discharged

Released from liability; term applied to negotiable instrument liability that has terminated.