STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Dans Hobby Stores had the following stock transactions

Question:

STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH

ASSETS Dan’s Hobby Stores had the following stock transactions during the year:

(a) Issued 5,000 shares of no-par common stock with a stated value of $10 per share for $50,000 cash.

(b) Issued 6,000 shares of no-par common stock with a stated value of $7 per share for $43,000 cash.

(d) Issued 3,500 shares of no-par, 6% preferred stock with a stated value of $22 per share for $77,000 cash.

(e) Issued 10,000 shares of $9 par common stock for land with a fair market value of $90,000.

(f) Issued 11,000 shares of $8 par common stock with a $9 fair market value for a building with an uncertain fair market value.

(g) Issued 8,000 shares of $30 par, 6% preferred stock for land with a fair market value of $243,000.

REQUIRED

Prepare general journal entries to record the transactions, identifying each transaction by letter.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...