The Holman Hotel Corporation is authorized to issue 1 million shares of $5 par value common stock. In its first year, 2008, the company has the following stock transactions:
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Jan. 10
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Issued 400,000 shares of stock at $8 per share.
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July 1
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Issued 100,000 shares of stock for land. The land had an asking price of $900,000. The stock is currently selling on a national exchange at $8.25 per share
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Sept. 1
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Purchased 10,000 shares of common stock for the treasury at $9 per share.
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Dec. 1
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Sold 4,000 shares of the treasury stock at $10 per share.
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Instructions
(a) Journalize the transactions.
(b) Prepare the stockholders' equity section assuming the company had retained earnings of $200,000 at December 31, 2008.