Question: Problem 1 (20 Points) Horner Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2011, its first year of

Problem 1 (20 Points) Horner Corporation is authorized to issue 1,000,000 shares

Problem 1 (20 Points) Horner Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2011, its first year of operation, the company has the following stock transactions. Jan 1 Jan 30 July 2 Sept 5 Dec 6 Dec 25 Issued 600,000 shares of stock at $8 per share Attorneys for the company accepted 600 shares of common stock as payment for legal services invoiced at $4,000. Issued 100,000 shares of stock for land. The land had an asking price of $900,000. The stock is currently selling on the national exchange at $12 per share. Purchased 5,000 shares of common stock for the treasury at $10 per share. Sold 1,000 shares of the treasury stock at $12 per share (Hint: TS/Pic). Sold 4,000 shares of the treasury stock at $8 per share (Hint: TS/Pic and RE). Instructions: Journalize the transactions for Horner Corporation.

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Answer Solution Date Particulars Debit Credit Jan 1 Cash 4800000 Common Stock 600000 PaidIn Capital ... View full answer

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