a. Beauty Island began operations on April 1 by issuing 60,000 shares of $5 for cash at $13 per share. On April 19, it issued 2,000 shares of to attorneys in settlement of their bill of $27,500 for organization costs. In addition, Beauty Island issued 1,000 shares of $1 preferred stock for $6 cash per share. Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded.
b. Fouts purchased 2,000 shares of its $10 for $130,000 on August 1. It will hold these shares in the treasury until resold. On December 1, the sold 1,200 shares of treasury stock for cash at $72 per share. Journalize the treasury stock transactions.
