Sansouci Corporation is authorized to issue an unlimited number of no par value common shares and 1,000,000 shares of no par value preferred shares. During 2001, its first year of operation, the company has the following share transactions. Jan. 1 Paid the province $2,000 for incorporation fees. Jan. 15 Issued 500,000 preferred shares at $7 per share. Cumulative dividends not yet declared were $1/share. Jan. 30 Lawyers for the company accepted 500 common shares as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $6,000. The shares were actively trading at $10 per share. July 2 Issued 100,000 common shares for land. The land had an asking price of $900,000. The shares are currently selling on a provincial exchange at $8 per share. Dec. 6 Net income for 2001 was $200,000.
Question 1
Sansouci Corporation is authorized to issue an unlimited number of no par value common shares and 1,000,000 shares of no par value
Jan. 1 Paid the province $2,000 for incorporation fees.
Jan. 15 Issued 500,000 preferred shares at $7 per share. Cumulative dividends not yet declared were $1/share.
Jan. 30 Lawyers for the company accepted 500 common shares as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $6,000. The shares were actively trading at $10 per share.
July 2 Issued 100,000 common shares for land. The land had an asking price of $900,000. The shares are currently selling on a provincial exchange at $8 per share.
Dec. 6 Net income for 2001 was $200,000.
Instructions
(a) Journalize the transactions for Sansouci Corporation.
(b) Prepare the shareholders’ equity section of the
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