Teacher Corporation obtained a charter at the start of 2003 that authorized 50.000 shares of no-par common stock and 20.000 shares of preferred stock, par value $ 1 0. The corporation was organized by four individuals who received 5 1 percent of the common stock. The remaining shares were to be sold to other individuals at $40 per share on a cash basis. During 2003. the following selected transactions occurred:

a. Collected $15 per share cash from three of the organizers and received two adjoining lots of land from the fourth organizer. Issued 4.000 shares of common stock to each of the four organizers and received title to the land.

b. Sold and issued 6,000 shares of common stock to an outsider at $40 cash per share.

c. Sold and issued 8,000 shares of preferred stock at $20 cash per share.

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