Issuance of Shares for Cash, Noncash Consideration, and by Subscription

Essay

Issuance of shares for cash, noncash consideration, and by subscription
Presented below is information related to Rhodesia Corp.:
1. Rhodesia is granted a charter that authorizes issuance of 100,000 no par value preferred shares and an unlimited number of no par value common shares.
2. 10,000 common shares are issued for land with a fair value of $ 400,000.
3. 3,000 preferred shares are sold for cash at $ 110 per share.
4. Rhodesia issues 100 common shares to its lawyer for costs associated with starting the company. At this time, the common shares are selling at $ 60 per share.
5. Rhodesia issues shares on a subscription basis, giving each subscriber the right to purchase 300 common shares at a price of $ 65 per share. Fifty individuals accept the company's offer and agree to pay 10% down and the remainder in three equal instalments.
6. The final instalment payment (for the subscriptions) is received and the shares are issued.
Instructions
Prepare the required general journal entries to record these transactions.