Week Four Assignment
dilion
ch._8_problem_1.docxProblem
Issuance of stock: organization costs. Snowbound Corporation was incorporated in July. The firm's charter authorized the sale of 200,000 shares of $10 par-value common stock. The following transactions occurred during the year:
|
7/1: |
Sold 45,000 shares of common stock to investors for $18 per share. Cash was collected and the shares were issued. |
|
7/7: |
Issued 600 shares to Sharon Dale, attorney-at-law, for services rendered during the corporation's organizational phase. Dale charged $12,600 for her work. |
|
8/11: |
Sold 20,000 shares to investors for $22 per share. Cash was collected and the shares were issued. |
|
12/14: |
Issued 30,000 shares to the MJB Company for land valued at $900,000. |
Instructions Prepare journal entries to record each transaction.
