Mainland Resources Inc. began operations on June 5, 2023. 2023 June 5 Gave 4,000 common shares to the organizers of the corporation in exchange for accounting and legal services valued at $84,900. 15 Received $23 cash per share for the issuance of 79,000 cormon shares. 16 issued 10,000 preferred shares for cash of 343 per share. 17 8,000 common shares were issued to a creditor who was owed $134,000. 18 The board of directors declared a cash dividend of $19,900 on the preferred shares and $5,400 on tho common shares to shareholders of record on June 20, payable July 1. 30 154,000 common shares were issued in exchange for machinery with a fair market value of $2,818,000. The shares were actively trading on this date at $17.00 per share. July 1 the dividends declared on June 18 were paid. Required: Journalize the above equity transactions that occurred during the first month of operations. Cash dividend account is used for declaring dividends. View transaction let Journal entry worksheet 1 Record the issue of 4,000 common shares to promoters. Note: Enter debits before credits. Date June 05, 2023 Record entry General Journal 7 Clear entry Debit Credit View general Journal

Mainland Resources Inc. began operations on June 5, 2023. 2023 June 5 Gave 4,000 common shares to the organizers of the corporation in exchange for accounting and legal services valued at $84,900. 15 Received $23 cash per share for the issuance of 79,000 cormon shares. 16 issued 10,000 preferred shares for cash of 343 per share. 17 8,000 common shares were issued to a creditor who was owed $134,000. 18 The board of directors declared a cash dividend of $19,900 on the preferred shares and $5,400 on tho common shares to shareholders of record on June 20, payable July 1. 30 154,000 common shares were issued in exchange for machinery with a fair market value of $2,818,000. The shares were actively trading on this date at $17.00 per share. July 1 the dividends declared on June 18 were paid. Required: Journalize the above equity transactions that occurred during the first month of operations. Cash dividend account is used for declaring dividends. View transaction let Journal entry worksheet 1 Record the issue of 4,000 common shares to promoters. Note: Enter debits before credits. Date June 05, 2023 Record entry General Journal 7 Clear entry Debit Credit View general Journal

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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