Direction. Read and understand the following statements and provide a briefly answer. Each question is 5 marks. Write your answers in a clean sheet of paper. Take picture and upload or you can write in the textbox. Make sure you have proper indention for the credit side.

1. Prepare journal entries to record the following four separate issuances of stock. (5 marks each x 4 = 20 marks)

a. Issued 1,000 shares of $ 10 par value common stock for $10,000 cash.

b. Issued 1,000 shares of no-par common stock in exchange for land estimated to be worth $20,000. The stock has no stated value.

c. Issued 1,000 shares of no-par common stock with stated value of $30 per share for $35,000 cash.

d. Issued 1000 shares of no-par value common stock to promoters in exchange for their services, estimated to be work $25,000. The stock has $30 per share stated value.

2. Boron Company is authorized to issue 50,000 shares of $50 par value, 8%, cumulative preferred stock. Prepare journal entries to record the exchanged 2,200 shares of preferred stock for a building with a market value of $135,000. ( 5 marks)