Cookies & Cakes Inc. is authorized to issue an unlimited number of common shares and 10,000 preferred shares. During its first year, the business completed the following share issuance transactions: July 19 Issued 16,000 common shares for cash of $8.75 per share Issued 800, $2.25 preferred shares for $80,000 cash Received inventory valued at $13,000 and equipment with fair value of $9,500 for 3,400 common shares Oct 3 Oct 11 Required: a) Journalize the transactions b) Prepare the shareholders' equity section of Cookies & Cakes' balance sheet. The ending balance of Retained Earnings is a deficit of $45,000
Cookies & Cakes Inc. is authorized to issue an unlimited number of common shares and 10,000 preferred shares. During its first year, the business completed the following share issuance transactions: July 19 Issued 16,000 common shares for cash of $8.75 per share Issued 800, $2.25 preferred shares for $80,000 cash Received inventory valued at $13,000 and equipment with fair value of $9,500 for 3,400 common shares Oct 3 Oct 11 Required: a) Journalize the transactions b) Prepare the shareholders' equity section of Cookies & Cakes' balance sheet. The ending balance of Retained Earnings is a deficit of $45,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cookies & Cakes Inc. is authorized to issue an unlimited number of
common shares and 10,000 preferred shares. During its first year, the
business completed the following share issuance transactions:
July 19
Issued 16,000 common shares for cash of $8.75 per share
Issued 800, $2.25 preferred shares for $80,000 cash
Received inventory valued at $13,000 and equipment with
fair value of $9,500 for 3,400 common shares
Oct 3
Oct 11
Required:
a) Journalize the transactions
b) Prepare the shareholders' equity section of Cookies & Cakes'
balance sheet. The ending balance of Retained Earnings is a
deficit of $45,000
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