Pearl Holdings Inc. was incorporated on July 1, 2020 with authorized share capital of 1,000,000 common shares and 500,000 preferred shares, convertible to common shares at a rate of 10 common shares for each preferred share. The preferred shares have a $20 par/stated value. Pearl had the following transactions related to share capital during the next few years. Jul. 1 Issued 100,000 common shares for $4 each. Jul. 1 Issued 5,000 preferred shares for $35 each. Aug. 15 Issued 10,000 common shares for legal services received, valued at $25,000. Sept. 1 Issued 5,000 common shares at $2.25 each in exchange for equipment received. Nov. 15 Reacquired 15,000 common shares for $3 each. Dec. 18 Converted 2000 preferred shares to common shares Complete the journal entries for above dates.
Pearl Holdings Inc. was incorporated on July 1, 2020 with authorized share capital of 1,000,000 common shares and 500,000
Pearl had the following transactions related to share capital during the next few years.
Jul. 1 Issued 100,000 common shares for $4 each.
Jul. 1 Issued 5,000 preferred shares for $35 each.
Aug. 15 Issued 10,000 common shares for legal services received, valued at $25,000.
Sept. 1 Issued 5,000 common shares at $2.25 each in exchange for equipment received.
Nov. 15 Reacquired 15,000 common shares for $3 each.
Dec. 18 Converted 2000 preferred shares to common shares
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