The following selected transactions occurred during Trio Networks Corporation’s first year of operations: 2020 Jan.15Issued 2,000 common shares to the corporation’s promoters in exchange for their efforts in creating it. Their efforts are estimated to be worth $31,400.Feb.2114,500 common shares were issued for cash of $13 per share.Mar.96,000 preferred shares were issued for cash totalling $110,100.Aug.1555,000 common shares were issued in exchange for land, building, and equipment with appraised values of $314,000, $419,000, and $111,000, respectively. Required:Prepare journal entries.1Record the issue of common shares to promoters. 2Record the issue of common shares for cash. 3Record the issue of preferred shares for cash. 4Record the issue of common shares in exchange for land, building, and equipment.

Journal Entries of Trio Networks Corporation’s for 2020

Answered: Prepare journal entries. 1 Record the…

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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The following selected transactions occurred during Trio Networks Corporation’s first year of operations:

2020
Jan.	15	Issued 2,000 common shares to the corporation’s promoters in exchange for their efforts in creating it. Their efforts are estimated to be worth $31,400.
Feb.	21	14,500 common shares were issued for cash of $13 per share.
Mar.	9	6,000 preferred shares were issued for cash totalling $110,100.
Aug.	15	55,000 common shares were issued in exchange for land, building, and equipment with appraised values of $314,000, $419,000, and $111,000, respectively.

Required:
Prepare journal entries.

1

Record the issue of common shares to promoters.
2

Record the issue of common shares for cash.
3

Record the issue of preferred shares for cash.
4

Record the issue of common shares in exchange for land, building, and equipment.

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