Assignment

The Magic Envelope Company has been granted a charter from the state of Connecticut authorizing 600,000 shares of common stock and 80,000 shares of preferred stock. Prepare the journal entries for the following transactions:

1/15/2009 Sold 200,000 shares of $1 par common stock to investors at a price of $15 per share.

1/20/2009 Sold 25,000 shares of $100 par 8% preferred stock to investors at a price of $115 per share.

2/1/2009 The company purchased land with 50,000 shares of $1 par common stock. The market value of the land was $800,000

2/22/2009 The company purchased equipment with 1,000 shares of $100 par 8% preferred stock. The market value of the equipment was $175,000.