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Question - Here some is information related to Watson Company for which I am trying to understand stuff:
(a) 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.
(b) 12,000 shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $400,000. The board establishes a stated value of $10 a share for the common stock.
(c) 6,000 shares of preferred stock are sold for cash at $110 per share.
(d) The company issues 200 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.
Required - How do make journal entries necessary to record the above transactions.
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