Spader, Inc. was established in 2007 and is authorized to issue 1,000,000 shares of common stock with a par value of $1. On August 27, 2007, before the stock was publicly traded, the founders were given stock in exchange for investments in the company.
• Crane invested $200,000 in exchange for 100,000 shares of stock.
• Schmidt donated a piece of land and a building with appraised values, respectively, of $50,000 and $175,000 in exchange for 100,000 shares of stock.
On February 4, 2009, Spader issued 10,000 shares at $10 per share in an initial public offering. On February 7, 2009, Schmidt sold 20,000 of her shares to another investor for $12 per share.
Required:
Prepare all necessary journal entries for Spader, Inc. on the following dates:
(a) August 27, 2007
(b) February 4, 2009
(c) February 7, 2009