A Company Is Authorized to Issue 750,000 Shares of $5

question 165

Essay

A company is authorized to issue 750,000 shares of $5 par value common stock.Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:
$\begin{array}{|c|l}\hline \text { Jan. 10 } & \text { Sold 102,000 shares of common stock for } \$ 8 \text { cash per share. } \\\hline 15 & \begin{array}{l}\text { Exchanged 10,000 shares of common stock for equipment with a market value of } \\\$ 80,000\end{array} \\\hline \text { Feb. 1 } & \begin{array}{l}\text { Exchanged } 500 \text { shares of common stock for } \$ 3,000 \text { of legal services, incurred } \\\text { during the company's organization. }\end{array} \\\hline\end{array}$

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