During its first year of operations, Anchor Holdings Corporation entered into the following transactions relating to shareholders’ equity. The articles of incorporation authorized the issue of 12,000,000 common shares, $1.50 par per share, and 1,500,000 preferred shares, $30.00 par per share. January 12 Sold 3,000,000 common shares for $9.00 per share. February 1 Issued 60,000 common shares in exchange for legal services. February 1 Sold 120,000 of its common shares and 24,000 preferred shares for a total of $1,884,000. September 4 Issued 480,000 of its common shares in exchange for land for which the cash price was known to be $5,424,000. Required: Prepare the shareholders' equity section of the December 31 balance sheet.
During its first year of operations, Anchor Holdings Corporation entered into the following transactions relating to shareholders’ equity. The articles of incorporation authorized the issue of 12,000,000 common shares, $1.50 par per share, and 1,500,000 preferred shares, $30.00 par per share. January 12 Sold 3,000,000 common shares for $9.00 per share. February 1 Issued 60,000 common shares in exchange for legal services. February 1 Sold 120,000 of its common shares and 24,000 preferred shares for a total of $1,884,000. September 4 Issued 480,000 of its common shares in exchange for land for which the cash price was known to be $5,424,000. Required: Prepare the shareholders' equity section of the December 31 balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
During its first year of operations, Anchor Holdings Corporation entered into the following transactions relating to shareholders’ equity. The articles of incorporation authorized the issue of 12,000,000 common shares, $1.50 par per share, and 1,500,000
| January 12 | Sold 3,000,000 common shares for $9.00 per share. |
|---|---|
| February 1 | Issued 60,000 common shares in exchange for legal services. |
| February 1 | Sold 120,000 of its common shares and 24,000 preferred shares for a total of $1,884,000. |
| September 4 | Issued 480,000 of its common shares in exchange for land for which the cash price was known to be $5,424,000. |
Required:
Prepare the shareholders' equity section of the December 31
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