Prepare journal entries to record the transaction

Reference no: EM1345299

Abernathy Corporation was organized on Jan 1, 2012. It is authorized to issue 10,000 shares of 8%, $50 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.

Jan 10 Issued 80,000 shares of common stock for cash at $5 per share.
Mar 1 Issued 5,000 shares of preferred stock for cash at $108 per share.
Apr 1 Issued 24,000 shares of common stock for land.The asking price of the land was $90,000 the fair value of the land was $80,000.
May 1 Issued 80,000 shares of common stock for cash at $7 per share.
Aug 1 Issued 10,000 shares of common stocks to attorney in payment of their bill of $50,000 for services rendered in helping the company organize.
Sept 1 Issued 10,000 shares of common stocks for cash at $9 per share.
Nov 1 Issued 1,000 shares of preferred stock for cash at $12 per share.

INTRODUCTION
Prepare the journal entries to record the above transaction.

Reference no: EM1345299

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