STOCK SUBSCRIPTIONS AND TREASURY STOCK Brown & Brown formed a corporation and had the following stock transactions

Question:

STOCK SUBSCRIPTIONS AND TREASURY STOCK Brown & Brown formed a corporation and had the following stock transactions during the year:

June 30 Incurred the following costs of incorporation:

Incorporation fees....$ 800

Attorneys’ fees.....5,000

Promotion fees......7,000

July 15 Issued 5,000 shares of $10 par common stock for $52,000 cash.

21 Issued 4,000 shares of $20 par, 8% preferred stock for $79,500 cash.

Aug. 1 Received subscriptions for 10,000 shares of $10 par common stock for $103,500.

15 Issued 10,000 shares of $10 par common stock in exchange for a building and fixtures with a fair market value of $110,000.

31 Received a payment of $53,500 for the common stock subscription.

Sept. 3 Purchased 1,000 shares of its own $10 par common stock for $11 a share.

12 Issued 3,500 shares of no-par common stock with a stated value of $8 per share for $30,000.

18 Received the balance in full for the common stock subscription and issued the stock.

30 Sold 500 shares of its treasury stock for $11.50 a share.

Oct. 15 Issued 5,000 shares of $20 par, 8% preferred stock in exchange for land with a fair market value of $108,000.

31 Sold 500 shares of its treasury stock for $10.75 a share.

REQUIRED

Prepare journal entries to record the transactions.

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...