Mainland Resources Inc. began operations on June 5, 2023. 2823 June 5 Gave 4,000 common shares to the organizers of the corporation in exchange for accounting and legal services valued at $83,800. 15 Received $21 cash per share for the issuance of 68,000 common shares. 16 Issued 10,000 preferred shares for cash of $32 per share. 17 8,000 common shares were issued to a creditor who was owed $123,000. 18 The board of directors declared a cash dividend of $18,880 on the preferred shares and $4,300 on the common shares to shareholders of record on June 20, payable July 1. 30 143,000 common shares were issued in exchange for machinery with a fair market value of $2,345,000. The shares were actively trading on this date at $15.00 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 6 7 > Record the issue of 4,000 common shares to promoters. Note: Enter debits before credits. Date June 05, 2023 General Journal Debit Credit Record entry Clear entry View general journal
Mainland Resources Inc. began operations on June 5, 2023. 2823 June 5 Gave 4,000 common shares to the organizers of the corporation in exchange for accounting and legal services valued at $83,800. 15 Received $21 cash per share for the issuance of 68,000 common shares. 16 Issued 10,000 preferred shares for cash of $32 per share. 17 8,000 common shares were issued to a creditor who was owed $123,000. 18 The board of directors declared a cash dividend of $18,880 on the preferred shares and $4,300 on the common shares to shareholders of record on June 20, payable July 1. 30 143,000 common shares were issued in exchange for machinery with a fair market value of $2,345,000. The shares were actively trading on this date at $15.00 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 6 7 > Record the issue of 4,000 common shares to promoters. Note: Enter debits before credits. Date June 05, 2023 General Journal Debit Credit Record entry Clear entry View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
AM.1103.
Transcribed Image Text:Mainland Resources Inc. began operations on June 5, 2023.
2823
June 5 Gave 4,000 common shares to the organizers of the corporation in exchange for accounting and legal
services valued at $83,800.
15 Received $21 cash per share for the issuance of 68,000 common shares.
16 Issued 10,000 preferred shares for cash of $32 per share.
17 8,000 common shares were issued to a creditor who was owed $123,000.
18 The board of directors declared a cash dividend of $18,880 on the preferred shares and $4,300 on the
common shares to shareholders of record on June 20, payable July 1.
30 143,000 common shares were issued in exchange for machinery with a fair market value of $2,345,000. The
shares were actively trading on this date at $15.00 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 6 7
>
Record the issue of 4,000 common shares to promoters.
Note: Enter debits before credits.
Date
June 05, 2023
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
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