3. Issuance of Stock

Parsons Corporation has 800,000 shares of $10 par common stock authorized. The following transactions took place during 2022, the first year of the companys existence:

1/1/22 Sold 100,000 shares of common stock for $40 per share.

3/1/22 Issued 1,000 shares of common stock in exchange for land valued at $55,000. The market value of the stock is unknown.

Instructions:

Prepare the January 1 and March 1, 2022, journal entries.

4. Stock Dividends

On January 1, 2022, Phillips has 600,000 shares of $5 par Common Stock authorized, 400,000 shares issued, and 360,000 shares outstanding. On August 1, 2022, Phillips declares a 10% Common Stock dividend. The market (fair) value of the stock on August 1, 2021, is $30 per share. The date of record is August 15, 2022. The stock dividend will be distributed on August 31, 2022.

Instructions:

Prepare all required journal entries for August 1, 15, and 31, 2022. If no journal entry is required, state NA.

Assume that Phillips declares a 40% Common Stock dividend instead of a 10% stock dividend. Prepare all required journal entries for August 1, 15, and 31, 2022. If no journal entry is required, state NA.

5. Stock Issuances and Repurchase

Lawrence Company began operations on January 1, 2021. Lawrence is authorized to issue 800,000 shares of $10 par value common stock. The following transactions occurred during 2021 and 2022.

1/1/21 Issued 400,000 shares of common stock for $64 per share.

6/1/22 Purchased 6,000 shares of treasury stock for $66 per share.

8/1/22 Resold 1,000 shares of the treasury stock for $68 per share.

9/1/22 Resold 2,000 shares of the treasury stock for $62 per share.

Instructions: Record the 2021 and 2022 stock transactions for Lawrence.