Alpha Company was organized on January 1, 2019. It is authorized to issue 10,000 shares of 8%, $50 par value preference shares, and 500,000 shares of no-par ordinary shares with a stated value of $2 per share. The following share transactions were completed during the first year. Jan. 05: ​Issued 70,000 ordinary shares for cash at $6 per share. Mar. 1: ​Issued 4,500 preference shares for cash at $110 per share. Apr. 1: ​Issued 24,000 ordinary shares for land. The asking price of the land was $90,000; the fair value of the land was $75,000. Aug. 1: ​Issued 10,000 ordinary shares to attorneys in payment of their bill of $47,000 for services rendered in helping the company organize. Dec. 1:​​Issued 1,000 preference shares for cash at $112 per share. Required:​Prepare the journal entries to record

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A:

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.