Allen Corporation was organized on April 8 of this year. The corporation was authorized to issue 900 shares of cumulative preferred 9 percent stock, $ 100 par value, and 9,000 shares of common stock, $ 35 par value. Record in general journal form the following transactions, which were completed during the firm’s first year of operations:
Apr. 8 Sold 3,200 shares of common stock at par for cash.
8 Issued 90 shares of common stock to an attorney in return for legal services pertaining to incorporation. The stock is selling at par.
May 7 Sold 500 shares of preferred stock at $ 109; received cash.
Aug. 12 Issued 3,000 shares of common stock in exchange for land with a fair market value of $ 105,000.