Vermue Corporation was organized on January 1, 2012. It is authorized to issue 100,000 preferred shares with a $7 dividend, and 400,000 common shares. The following share transactions were completed during the first year: Jan. 10 Issued 200,000 common shares for cash at $23 per share. Mar. 1 Issued 17,000 preferred shares for cash at $119 per share. Apr. 1 Issued 3,000 common shares for land. The asking price for the land was $67,000; its fair value was $60,000. May 1 Issued 20,000 common shares for cash at $18 per share. Aug. 1 Issued 1,000 common shares to lawyers in payment of their bill of $19,000 for services rendered in helping the company organize. Sept. 1 Issued 32,500 common shares for cash at $16 per share. Nov. 1 Issued 1,500 preferred shares for cash at $125 per share.
Instructions
Prepare the journal entries to record the above transactions.