Pool Corporation is authorized to issue an unlimited number of common shares and 1,000, 000 shares of preferred shares. During 2023, its first year of operation, the company had net income of $200,000. The following share transactions occurred: Jan 1 Paid the province $2,000 for incorporation fees. Jan 15 Issued 500,000 of § 1 cumulative preferred shares at S 7 per share. Jan 30 Lawyers for the company accepted 500 common shares as payment for legal
Pool Corporation is authorized to issue an unlimited number of common shares and 1,000, 000 shares of preferred
shares. During 2023, its first year of operation, the company had net income of $200,000. The following share
transactions occurred: Jan 1 Paid the province $2,000 for incorporation fees. Jan 15 Issued 500,000 of § 1 cumulative
preferred shares at S 7 per share. Jan 30 Lawyers for the company accepted 500 common shares as payment for legal
services provided in helping the company incorporate. The legal services are estimated to have a value of $ 5,000.
The shares were actively trading at $ 10.50 per share. Jul 2 Issued 100, 000 common shares for land. The land had an
asking price of $ 900, 000 and its appraised value was $800, 000. a) Journalize the transactions for Pool Corporation. b
) Prepare the shareholders' equity section of the
Step by step
Solved in 4 steps with 2 images
