D. State what would happen to the equity of Kicking Horse Oil Ltd. after each of the following independent transactions: (a) The founders of the company made an initial investment of $100,000, receiving 100,000 common shares in exchange. (b) The company borrowed $250,000 from a bank. (c) The company listed its shares on the Calgary Stock Exchange and sold 1,000 common shares to the general public for $1,000,000. (d) The company sold 100,000 10% cumulative preference shares to the general public for $100,000.
D. State what would happen to the equity of Kicking Horse Oil Ltd. after each of the following independent transactions: (a) The founders of the company made an initial investment of $100,000, receiving 100,000 common shares in exchange. (b) The company borrowed $250,000 from a bank. (c) The company listed its shares on the Calgary Stock Exchange and sold 1,000 common shares to the general public for $1,000,000. (d) The company sold 100,000 10% cumulative preference shares to the general public for $100,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solve part a, b, c and part d
Transcribed Image Text:10.
State what would happen to the equity of Kicking Horse Oil Ltd. after
each of the following independent transactions:
(a) The founders of the company made an initial investment of
$100,000, receiving 100,000 common shares in exchange.
(b) The company borrowed $250,000 from a bank.
(c) The company listed its shares on the Calgary Stock Exchange and
sold 1,000 common shares to the general public for $1,000,000.
(d) The company sold 100,000 10% cumulative preference shares to
the general public for $100,000.
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