The Frame Corporation was organized on April 8 of this year.

The corporation was authorized to issue 900 shares of cumulative preferred 9 percent stock, $100 par value, and 9,000 shares of common stock, $30 par value.

Record in general journal form the following transactions, completed during the firm’s first year of operations:

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Apr. 8 Sold 3,200 shares of common stock at par for cash. 8 Issued 80 shares of common stock to an attorney in return for legal services pertaining to incorporation. The stock is selling at par. Sold 500 shares of preferred stock at $107; received cash. Issued 2,800 shares of common stock in exchange for land with a fair market value of $84,000. May 7 Aug. 12