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 $83,900. 15 Received $23 cash per share for the issuance of 69,000 common shares. 16 Issued 10,000 preferred shares for cash of $33 per share. 17 8,000 common shares were issued to a creditor who was owed $124,000. 18 The board of directors declared a cash dividend of $18,900 on the preferred shares and $4,400 on the common shares to shareholders of record on June 20, payable July 1. 30 144,000 common shares were issued in exchange for machinery with a fair market value of $2,648,000. 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.
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 $83,900. 15 Received $23 cash per share for the issuance of 69,000 common shares. 16 Issued 10,000 preferred shares for cash of $33 per share. 17 8,000 common shares were issued to a creditor who was owed $124,000. 18 The board of directors declared a cash dividend of $18,900 on the preferred shares and $4,400 on the common shares to shareholders of record on June 20, payable July 1. 30 144,000 common shares were issued in exchange for machinery with a fair market value of $2,648,000. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $83,900.
15 Received $23 cash per share for the issuance of 69,000 common shares.
16 Issued 10,000 preferred shares for cash of $33 per share.
17 8,000 common shares were issued to a creditor who was owed $124,000.
18 The board of directors declared a cash dividend of $18,900 on the preferred shares and $4,400 on
the common shares to shareholders of record on June 20, payable July 1.
144,000 common shares were issued in exchange for machinery with a fair market value of
30
$2,648,000. 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 list
Journal entry worksheet
1
2
3 4
5
Note: Enter debits before credits.
Date
June 05, 2023
6
Record the issue of 4,000 common shares to promoters.
General Journal
7
Debit
Credit
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