Ardmark Corporation was incorporated on January 1, 2003. It is authorized to issue an unlimited number of $10 preferred shares ($2 dividend) that have no par value, and are cumulative and 1,000 common shares of no par value. The following share transactions were completed during the first year: Jan. 1 Issued 100 common shares for cash at $40 per share. Issued 10,000 preferred shares for land. The land was listed for sale at $110,000 but was valued by a licensed appraiser at $100,000. Mar. 21 Apr. 17 Sept. 1 Sept. 1 Dec. 18 Issued 200 common shares to pay a consultant's bill of $8,000. July 23 Issued 5,000 preferred shares for cash at $10 per share. Instructions Issued 20 common shares to a law firm for payment of their bill of $800 to file the company's incorporation documents. Issued 40 common shares for $2,000 cash. Issued 6,000 preferred shares for cash at $10 each. Show Transcribed Text (a) Journalize the transactions. (b) Calculate the year-end balance in each of the share capital accounts.
Ardmark Corporation was incorporated on January 1, 2003. It is authorized to issue an unlimited number of $10 preferred shares ($2 dividend) that have no par value, and are cumulative and 1,000 common shares of no par value. The following share transactions were completed during the first year: Jan. 1 Issued 100 common shares for cash at $40 per share. Issued 10,000 preferred shares for land. The land was listed for sale at $110,000 but was valued by a licensed appraiser at $100,000. Mar. 21 Apr. 17 Sept. 1 Sept. 1 Dec. 18 Issued 200 common shares to pay a consultant's bill of $8,000. July 23 Issued 5,000 preferred shares for cash at $10 per share. Instructions Issued 20 common shares to a law firm for payment of their bill of $800 to file the company's incorporation documents. Issued 40 common shares for $2,000 cash. Issued 6,000 preferred shares for cash at $10 each. Show Transcribed Text (a) Journalize the transactions. (b) Calculate the year-end balance in each of the share capital accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject- account
Transcribed Image Text:Ardmark Corporation was incorporated on January 1, 2003. It is authorized to issue
an unlimited number of $10 preferred shares ($2 dividend) that have no par value, and
are cumulative and 1,000 common shares of no par value. The following share
transactions were completed during the first year:
Issued 100 common shares for cash at $40 per share.
Issued 10,000 preferred shares for land. The land was listed for sale at
$110,000 but was valued by a licensed appraiser at $100,000.
Jan. 1
Mar. 21
Apr. 17
Sept. 1
Sept. 1
Dec. 18
Issued 200 common shares to pay a consultant's bill of $8,000. July 23
Issued 5,000 preferred shares for cash at $10 per share.
Instructions
Issued 20 common shares to a law firm for payment of their bill of $800 to
file the company's incorporation documents.
Issued 40 common shares for $2,000 cash.
Issued 6,000 preferred shares for cash at $10 each.
Show Transcribed Text
(a) Journalize the transactions.
(b) Calculate the year-end balance in each of the share capital accounts.
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