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Question - Presented below is information related to Wyrick Company.
1. The company is granted a charter that authorizes issuance of 15,000 shares of $100 par value preferred stock and 40,000 shares of no-par common stock.
2. Eight thousand shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $300,000. The board establishes a stated value of $5 per share for the common stock.
3. Five thousand shares of preferred stock are sold for cash at $120 per share.
4. The company issues 100 shares of common stock to its attorneys for costs associated with starting the company. At that time, the common stock was selling at $60 per share.
Instructions: Prepare the general journal entries necessary to record these transactions.
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