STOCK ISSUANCE (NONCASH ASSETS, SUBSCRIPTION, AND TREASURY
STOCK) Smith & Cline had the following stock transactions during the year:
(a) Issued 5,000 shares of common stock with a $5 par value in exchange for real estate (land) with a fair market value of $27,500.
(b) Issued 7,500 shares of common stock with a $5 par value and $6 fair market value in exchange for a building with an uncertain fair market value.
(c) Received subscriptions for 10,000 shares of $6 par common stock for $65,000.
(d) Received subscriptions for 5,000 shares of $6 par common stock for $28,000.
(e) Received a payment of $30,000 on the stock subscription in transaction (c).
(f) Received the balance in full for the stock subscription in transaction (c) and issued the stock.
(g) Received the balance in full for the stock subscription in transaction (d) and issued the stock.
(h) Purchased 1,000 shares of its own $6 par common stock for $7 a share ($7,000).
(i) Sold 500 shares of the treasury stock in transaction (h) for $7.50 a share.
(j) Sold 500 shares of the treasury stock in transaction (h) for $6.75 a share.
Prepare general journal entries to record the transactions, identifying each by letter.

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December 20, 2011

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