Question Details

Garner Corporation is authorized to issue 


1
Garner Corporation is authorized to issue 1,000,000 shares of $5 par value common stock.
During 2008, its first year of operation, the company has the following stock transactions.
Jan. 1 Paid the state $2,000 for incorporation fees.
Jan. 15 Issued 500,000 shares of stock at $7 per share.
Jan. 30 Attorneys for the company accepted 500 shares of common stock as payment for
legal services rendered in helping the company incorporate. The legal services are
estimated to have a value of $8,000.
July 2 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 per share.
Sept. 5 Purchased 15,000 shares of common stock for the treasury at $10 per share.
Dec. 6 Sold 11,000 shares of the treasury stock at $11 per share.
Instructions
Journalize the transactions for Garner Corporation.


2
Prepare the necessary journal entry for each of the following transactions for Starr Corporation.
(a) Issued 2,000 shares of its $5 par value common stock for $16 per share.
(b) Issued 5,000 shares of its stock for land advertised for sale at $80,000. Starr's stock is
actively traded at a market price of $15 per share.




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