Manitoba Deck System Corporation (MDSC) is a public company whose shares are actively traded on the Toronto Stock Exchange and thus it follows IFRS. The following information relates to MDSC: Jan. 1, 2012
The Company is granted a charter that authorizes the issuance of 500,000 no par value common shares, and 250,000 no par value preferred shares that entitle the holder to a $4 per share annual dividend. Jan. 10, 2012 15,000 common shares are issued to the founders of the corporation for land that has a fair value of $450,000. Mar. 10, 2012 4,000 preferred shares are issued for cash for $100 per share. Apr. 15, 2012
The company issues 110 common shares to a car dealer in exchange for a used vehicle. The asking price for the car is $6,400. At the time of the exchange, the common shares are selling at $55 per share. Aug. 20, 2012 MDSC decides to issue shares on a subscription basis to select individuals, giving each person the right to purchase 250 common shares at a price of $60 per share. Forty individuals accept the company’s offer and agree to pay 10% down and the remainder in three equal instalments. Oct. 11, 2012 MDSC issues 3,000 common shares and 600 preferred shares for a lump sum of $230,000 cash. At the time of sale, both the common and preferred shares are actively traded. The common shares are trading at $58 each; the preferred shares at $105 each. Dec. 31, 2012 MDSC declares cash dividends totalling $26,000, payable on January 31, 2013, to holders of record on January 15, 2013.
Prepare the general journal entries to record the transactions.