Question: BiBa Manufacturing s charter authorized the company to issue an unlimited

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.
Requirements
1. Prepare journal entries for all the transactions.
2. Prepare the shareholders’ equity section of the balance sheet at December 31, 2014

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  • CreatedJuly 08, 2015
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