Galaxy Publishing Inc. was recently organized. The company issued common shares to a lawyer who provided legal services of $15,000 to help organize the corporation. Galaxy also issued common shares to an inventor in exchange for his patent with a fair value of $80,000. In addition, Galaxy received cash both for the issuance of 5,300 of its preferred shares at $130 per share and for the issuance of 29,000 common shares at $26 per share. During the first year of operations, Galaxy earned net income of $70,000 and declared a cash dividend of $35,000. Without making journal entries, determine the total share capital created by these transactions.
Galaxy Publishing Inc. was recently organized. The company issued common shares to a lawyer who provided legal services of $15,000 to help organize the corporation. Galaxy also issued common shares to an inventor in exchange for his patent with a fair value of $80,000. In addition, Galaxy received cash both for the issuance of 5,300 of its preferred shares at $130 per share and for the issuance of 29,000 common shares at $26 per share. During the first year of operations, Galaxy earned net income of $70,000 and declared a cash dividend of $35,000. Without making journal entries, determine the total share capital created by these transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Galaxy Publishing Inc. was recently organized. The company issued common
shares to a lawyer who provided legal services of $15,000 to help organize
the corporation. Galaxy also issued common shares to an inventor in
exchange for his patent with a fair value of $80,000. In addition, Galaxy
received cash both for the issuance of 5,300 of its preferred shares at $130
per share and for the issuance of 29,000 common shares at $26 per share.
During the first year of operations, Galaxy earned net income of $70,000 and
declared a cash dividend of $35,000. Without making journal entries,
determine the total share capital created by these transactions.
Share capital consists of:
Total share capital
[0]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd09d91fc-8cb6-4bd7-849c-cba020428cc4%2Fb1d4b0c5-9ef2-42e1-a3b6-9c333b5f4263%2Fsngd4nl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Galaxy Publishing Inc. was recently organized. The company issued common
shares to a lawyer who provided legal services of $15,000 to help organize
the corporation. Galaxy also issued common shares to an inventor in
exchange for his patent with a fair value of $80,000. In addition, Galaxy
received cash both for the issuance of 5,300 of its preferred shares at $130
per share and for the issuance of 29,000 common shares at $26 per share.
During the first year of operations, Galaxy earned net income of $70,000 and
declared a cash dividend of $35,000. Without making journal entries,
determine the total share capital created by these transactions.
Share capital consists of:
Total share capital
[0]
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