Madona Ltd. begins operations on March 1, 2020, by issuing 1,500,000 shares of $5 par value ordinary shares for cash at $10 per share. The company is authorized to issue 2 million ordinary shares. On April 15, 2020, Madona Ltd. issues 10,000, 4% $20 par value preference shares to attorneys in settlement of their bill of $700,000 for organization costs. The company is authorized to issue 500,000 preference shares. On October 1, 2020, Madona acquires 500,000 shares of its stock at $12 per share. On November 1, 2020, Madona sell 200,000 shares of its treasury stocks at $13 per share. On December 1, 2020, Madona sell another 200,000 treasury stocks at $10.5 per share. At the end of its first year of operation, Madona reported a net income of $500,000. On December 22, 2020, Madona declares a 1% stock dividend and on this day, the stock market value of ordinary shares is $10 per share. On December 31, 2020, the company distributes the stock dividends. Prepare the equity section of Madona Ltd on December 31, 2020.
Madona Ltd. begins operations on March 1, 2020, by issuing 1,500,000 shares of $5 par value ordinary shares for cash at $10 per share. The company is authorized to issue 2 million ordinary shares.
On April 15, 2020, Madona Ltd. issues 10,000, 4% $20 par value
On October 1, 2020, Madona acquires 500,000 shares of its stock at $12 per share.
On November 1, 2020, Madona sell 200,000 shares of its
On December 1, 2020, Madona sell another 200,000 treasury stocks at $10.5 per share.
At the end of its first year of operation, Madona reported a net income of $500,000.
On December 22, 2020, Madona declares a 1% stock dividend and on this day, the stock market value of ordinary shares is $10 per share.
On December 31, 2020, the company distributes the stock dividends.
Prepare the equity section of Madona Ltd on December 31, 2020.
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