Blue Corp., a private corporation, received its articles of incorporation on January 3, 2021. It is authorized to issue an unlimited number of common shares and $1 preferred shares. It had the following share transactions during the year:Jan. 12 Issued 50,000 common shares for $5 per share.24 Issued 950 common shares in payment of a $4,550 bill for legal services.July 11 Issued 1,000 preferred shares for $25 per share.Oct. 1 Issued 10,000 common shares in exchange for land. The land's fair value was estimated to be $55,600. Blue's accountant estimated that the fair value of the shares issued might be as high as $6 per share.

Common stock means to stock in a business owned by individuals who have the ability to vote at…

Answered: Blue Corp., a private corporation,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Blue Corp., a private corporation, received its articles of incorporation on January 3, 2021. It is authorized to issue an unlimited number of common shares and $1 preferred shares. It had the following share transactions during the year:

Jan. 12		Issued 50,000 common shares for $5 per share.
24		Issued 950 common shares in payment of a $4,550 bill for legal services.
July 11		Issued 1,000 preferred shares for $25 per share.
Oct. 1		Issued 10,000 common shares in exchange for land. The land's fair value was estimated to be $55,600.
		Blue's accountant estimated that the fair value of the shares issued might be as high as $6 per share.

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