Question: HoShi Electronics charter authorized the company to issue an unlimited

HoShi Electronics’ charter authorized the company to issue an unlimited number of common shares and 250,000 preferred shares. The following transactions occurred during Hoshi’s first year of business:
Mar 10 Issued 3,000 common shares to the firm’s promoters for the work done to set up the corporation. This work has an estimated value of $90,000.
July 21 20,000 shares were issued for cash of $32 per share.
Sep 1 12,000 preferred shares were issued for cash totalling $300,000.
Dec 11 27,000 common shares in total were issued for land, buildings, and equipment with appraised values of $225,000, $450,000, and $270,000 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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