Sheffield Corp, a private corporation, received its articles of incorporation on January 3, 2021. It is authorized to issue an unlimited number of common shares and $1 preferred shares. It had the following share transactions during the year: Jan. 12 24 July 11 Oct. 1 Issued 50,000 common shares for $5 per share. Issued 950 common shares in payment of a $4,450 bill for legal services. Issued 1.000 preferred shares for $25 per share. Issued 10,000 common shares in exchange for land. The land's fair value was estimated to be $55,900. Sheffield's accountant estimated that the fair value of the shares issued might be as high as $6 per share.
Sheffield Corp, a private corporation, received its articles of incorporation on January 3, 2021. It is authorized to issue an unlimited number of common shares and $1 preferred shares. It had the following share transactions during the year: Jan. 12 24 July 11 Oct. 1 Issued 50,000 common shares for $5 per share. Issued 950 common shares in payment of a $4,450 bill for legal services. Issued 1.000 preferred shares for $25 per share. Issued 10,000 common shares in exchange for land. The land's fair value was estimated to be $55,900. Sheffield's accountant estimated that the fair value of the shares issued might be as high as $6 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sheffield Corp., a private corporation, received its articles of incorporation on January 3, 2021. It is authorized to issue an unlimited
number of common shares and $1 preferred shares. It had the following share transactions during the year:
Jan. 12
24
July 11
Oct. 1
Issued 50,000 common shares for $5 per share.
Issued 950 common shares in payment of a $4,450 bill for legal services.
Issued 1.000 preferred shares for $25 per share.
Issued 10,000 common shares in exchange for land. The land's fair value was estimated to be $55,900.
Sheffield's accountant estimated that the fair value of the shares issued might be as high as $6 per share.
Journalize the share transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order
presented in the problem.)
Account Titles and Explanation
Date
Jan, 12
[To record issuance of shares)
Debit
Credit
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