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