BiBa Manufacturing’s charter authorized the company to issue an unlimited number of common shares and 750,000 preferred shares. The following transactions occurred during BiBa’s first year of business:
Jan 10 Issued 5,000 common shares to the firm’s promoters for the work done to set up the corporation. This work has an estimated value of $60,000.
May 21 40,000 shares were issued for cash of $15 per share.
July 25 15,000 preferred shares were issued for cash totaling $225,000.
Oct 1 50,000 common shares in total were issued for land, buildings, and equipment with appraised values of $250,000, $380,000, and $170,000 respectively.
1. Prepare journal entries for all the transactions.
2. Prepare the shareholders’ equity section of the balance sheet at December 31, 2014

  • CreatedJuly 08, 2015
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