A Company Is Authorized to Issue 750,000 Shares of $5

Essay

A company is authorized to issue 750,000 shares of $5 par value common stock.Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:
$\begin{array}{|c|l|}\hline \text { Jan. 10 } & \text { Sold 102,000 shares of common stock for } \$ 8 \text { cash per share. } \\\hline 15 & \begin{array}{l}\text { Exchanged 10,000 shares of common stock for equipment with a market value of } \\\$ 80,000 .\end{array} \\\hline \text { Feb. 1 } & \begin{array}{l}\text { Exchanged 500 shares of common stock for } \$ 3,000 \text { of legal services, Incurred } \\\text { during the company's organization. }\end{array}\\\hline \end{array}$