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Instructions a. Journalize the transactions. b. Post to the equity accounts. (Use J5 as the posting reference.) c. Prepare the share capital section of the statement of financial position at December 31, 2020.

Instructions a. Journalize the transactions. b. Post to the equity accounts. (Use J5 as the posting reference.) c. Prepare the share capital section of the statement of financial position at December 31, 2020.

FINANCIAL ACCOUNTING
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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P12.1 (LO 2, 4) Gão Limited was organized on January 1, 2020. It is authorized to issue 10,000 8%. HK$1.000 par value preference shares, and 500,000 no-par ordinary shares with a stated value of HKS20 per share. The following share transactions were completed during the first year. Jan. 10 Mar. 1 Apr. 1 May 1 Aug. 1 Sept. 1 Nov. 1 Issued 100,000 ordinary shares for cash at HKS48 per share. Issued 5,000 preference shares for cash at HKS1,050 per share. Issued 18,000 ordinary shares for land. The asking price of the land was HK$980,000. The fair value of the land was HKS920,000. Issued 80,000 ordinary shares for cash at HK$45 per share. Issued 10,000 ordinary shares to attorneys in payment of their bill of HK$320,000 for services provided in helping the company organize. Issued 10,000 ordinary shares for cash at HKS50 per share. Issued 1,000 preference shares for cash at HKS1,060 per share. Instructions a. Journalize the transactions. b. Post to the equity accounts. (Use J5 as the posting reference.) c. Prepare the share capital section of the statement of financial position at December 31, 2020. Journalize share transactions, post and prepare share capital section. c. Total equity HK$16,450,000
Transcribed Image Text:P12.1 (LO 2, 4) Gão Limited was organized on January 1, 2020. It is authorized to issue 10,000 8%. HK$1.000 par value preference shares, and 500,000 no-par ordinary shares with a stated value of HKS20 per share. The following share transactions were completed during the first year. Jan. 10 Mar. 1 Apr. 1 May 1 Aug. 1 Sept. 1 Nov. 1 Issued 100,000 ordinary shares for cash at HKS48 per share. Issued 5,000 preference shares for cash at HKS1,050 per share. Issued 18,000 ordinary shares for land. The asking price of the land was HK$980,000. The fair value of the land was HKS920,000. Issued 80,000 ordinary shares for cash at HK$45 per share. Issued 10,000 ordinary shares to attorneys in payment of their bill of HK$320,000 for services provided in helping the company organize. Issued 10,000 ordinary shares for cash at HKS50 per share. Issued 1,000 preference shares for cash at HKS1,060 per share. Instructions a. Journalize the transactions. b. Post to the equity accounts. (Use J5 as the posting reference.) c. Prepare the share capital section of the statement of financial position at December 31, 2020. Journalize share transactions, post and prepare share capital section. c. Total equity HK$16,450,000
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