Kerr Corporation began operations in January 2003. The charter authorized the following capital stock:

Preferred stock: 9 percent. $10 par, authorized 40.000 shares.

Common stock: No-par. authorized 80.000 shares, stated value per share is $5.

During 2003. the following transactions occurred in the order given:

a. Issued 20.000 shares of common stock to each of the three organizers. Collected S9 cash per share from two of the organizers and received a plot of land in full payment for the shares of the third organizer.

b. Sold 6.000 shares of the preferred stock at $18 per share.

C Sold 500 shares of the preferred stock at $20 and 1,000 shares of common stock at $12 per share.

Required: 1. Give the journal entries indicated for each of these transactions. 2. Write a brief memo explaining what you used to determine the cost of the land.