Sierra Corporation received its corporate charter on June 3 of the current year. The corporation is authorized to issue 80,000 shares of $10.00 stated-value stock. A cash receipts journal and a cash payments journal are provided in the Working Papers. Source documents are abbreviated as follows: check, C; receipt, R. Work this problem independently.

Journalize the following transactions.

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June 3. Received cash from three incorporators for 40,000 shares of $10.00 stated-value common stock, $400,000.00. R1-3. 5. Paid cash to Raul Mendoza as reimbursement for organization costs, $15,000.00. C1.