Problem 13-06A a-b (Part Level Submission) (Video)

Martinez Corporation has been authorized to issue20,500shares of $100par value,10%, preferred stock and1,084,200shares of no-par common stock. The corporation assigned a $2.60stated value to the common stock. At December 31, 2020, the ledger contained the following balances pertaining to stockholders' equity.

Preferred Stock $125,000

Paid-in Capital in Excess of ParPreferred Stock $15,000

Common Stock $1,084,200

Paid-in Capital in Excess of Stated ValueCommon Stock $1,834,800

Treasury Stock (1,160common shares) $13,920

Paid-in Capital from Treasury Stock $1,740

Retained Earnings $81,500

Accumulated Other Comprehensive Income $62,000

The preferred stock was issued for land having a fair value of $140,000. All common stock issued was for cash. In November,1,740shares of common stock were purchased for the treasury at a per share cost of $12. In December,580shares of treasury stock were sold for $15per share. No dividends were declared in 2020.

(a) Prepare the journal entries for the:

(1)Issuance of preferred stock for land

(2)Issuance of common stock for cash.

(3)Purchase of common treasury stock for cash.

(4)Sale of treasury stock for cash.