The Grand-Way Food Service, Inc., was organized on April 4 of this year and has a charter that stipulates the following authorized capital:

a. 3,000 shares of preferred 7 percent stock, $100 par value

b. 40,000 shares of common stock, $25 par value Grand-Way Food Service, Inc., completed the following transactions during its first year of operations:

Instructions Record the above transactions in general journal form.

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Apr. 8 Received subscriptions to 12,000 shares of common stock at $25 per share; collected 60 percent of the subscription price. 14 Sold 1,000 shares of preferred 7 percent stock for $97 per share, receiving cash. May 7 Subscribers to 12,000 shares of common stock paid an additional 20 percent of the subscription price. June July Aug. 6 Subscribers to 12,000 shares of common stock paid an additional 20 percent of the subscription price. Grand-Way Food Service, Inc., issued the 12,000 shares of stock. 5 Sold 600 shares of preferred 7 percent stock for $94 per share, receiving cash. 14 Received subscriptions to 3,000 shares of common stock at $27 per share; collected 50 percent of the subscription price. Sept. 21 Received subscriptions to 300 shares of preferred 7 percent stock for $97 per share; collected 20 percent of the subscription price.