(Recording the Issuance of Common and Preferred Stock) Kathleen Battle Corporation was organized on January 1, 2007. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.

Instructions Prepare the journal entries to record the above transactions.

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Jan. 10 Mar. 1 Issued 80,000 shares of common stock for cash at $5 per share. Issued 5,000 shares of preferred stock for cash at $108 per share. Apr. 1 May 1 Aug. 1 Sept. 1 Nov. 1 Issued 24,000 shares of common stock for land. The asking price of the land was $90,000; the fair market value of the land was $80,000. Issued 80,000 shares of common stock for cash at $7 per share. Issued 10,000 shares of common stock to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize. Issued 10,000 shares of common stock for cash at $9 per share. Issued 1,000 shares of preferred stock for cash at $112 per share.