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
Related questions
Question
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.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education