Chapter 12 - Practice Problem \#1 Prepare journal entries for all of the below transactions. 1. February 1, ABC Company issued 30,000 shares of 6.75% preferred stock, $25 par value. The company received $45 cash per share. 2. February 12, ABC Company issued 250,000 shares of $10 par value common stock for $35 cash per share. 3. February 20, ABC Company purchased land and a building from Purple, Inc. in exchanged for common stock. The building has a mortgage note of $750,000 for 20 years at 5.75% and there is accrued interest of $10,200 on the mortgage note at the time of purchase. It is agreed that the land will be priced at $125,000 and the building at $800,000 and that Purple, Inc. will receive equity in the corporation at par value. The corporation has agreed to assume the mortgage note. 4. February 24 , issued 100,000 shares of $10 par value common stock in exchange for furniture, equipment, and machinery with fair market values of $200,575. $1,105,000, and $562,300 respectively. 5. March 9, ABC Company declared a $65,200 cash dividend to all stockholders of record as of March 31. The dividend will be paid on April 30 . 6. April 30 , paid the cash dividend. 7. July 1 , the company purchased 15,000 shares of Treasury Stock for $375,000 cash. 8. September 10 , the company sold 8,500 shares of the Treasury Stock for $40 cash per share. 9. October 30 , the company sold the remaining Treasury Stock for $20.00 cash per share