10. State what would happen to the equity of Kicking Horse Oil Ltd. after each of the following independent transactions: LES (a) The founders of the company made an initial investment of bobnts $100,000, receiving 100,000 common shares in exchange. (b) The company borrowed $250,000 from a bank. (c) The company listed its shares on the Calgary Stock Exchange and boninn sold 1,000 common shares to the general public for $1,000,000. (d) The company sold 100,000 10% cumulative preference shares to 18 the general public for $100,000.
10. State what would happen to the equity of Kicking Horse Oil Ltd. after each of the following independent transactions: LES (a) The founders of the company made an initial investment of bobnts $100,000, receiving 100,000 common shares in exchange. (b) The company borrowed $250,000 from a bank. (c) The company listed its shares on the Calgary Stock Exchange and boninn sold 1,000 common shares to the general public for $1,000,000. (d) The company sold 100,000 10% cumulative preference shares to 18 the general public for $100,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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