Question
McDonald Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. During 2017, its first year of operation, the company has the
McDonald Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. During 2017, its first year of operation, the company has the following stock transactions.
Jan. 1Paid the state $5,000 for incorporation fees.
Jan.15Issued 500,000 shares of stock at $6 per share.
Jan.30Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $7,000.
July2Issued 100,000 shares of stock for land. The land had an asking price of $900,000. The stock is currently selling on a national exchange at $8 per share.
Sept.5Purchased 15,000 shares of common stock for the treasury at $9 per share.
Dec.6Sold 11,000 shares of the treasury stock at $11 per share. Instructions
Journalize the transactions for McDonald Corporation.
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