Student Exam

(1.)The company is granted a charter that authorizes issuance of 15,000 shares of $100 par value preferred stock and 40,000 shares of no-par common stock. (2.) Eight thousand shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $300,000. The board establishes a stated value of $5per share for the common stock. (3.)Five thousand shares of preferred stock are sold for cash at $120 per share. (4.)The company issues 100 shares of common stock to its attorneys for costs associated with starting the company. At that time, the common stock was selling at $60 per share. Instructions: Prepare the general journal entries necessary to record these transactions.