Rolman Corporation is authorized to issue 1,000,000 shares of $5 par value common
stock. In its first year, the company has the following stock transactions.Instructions
(a) Journalize the transactions.
(b) Prepare the stockholders’ equity section assuming the company had retained earnings
of $200,000 at December 31.

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Issued 400,000 shares of stock at $8 per share. Issued 100,000 shares of stock for land. The land had an asking price of $900,000. The stock is currently selling on a national exchange at $8.25 per share. Sept. 1 Purchased 10,000 shares of common stock for the treasury at $9 per share. Dec. 1 Sold 4,000 shares of the treasury stock at $10 per share. Jan. 10 July 1