Moosonee Ltd. was incorporated as a private company on January 2, 2015, and is authorized to issue an unlimited number of common shares and $1 preferred shares. The company had the following share transactions in its first month of operations:

Jan. 6 Issued 200,000 common shares for $1.50 per share.

12 Issued 50,000 common shares for $1.75 per share.

18 Issued 10,000 preferred shares for $25 per share.

31 Issued 10,000 common shares in exchange for $15,000 of legal services.

Instructions

(a) Record the above transactions.

(b) What is the number of preferred and common shares at the end of January?

(c) If Moosonee were a publicly traded company, how might the journal entry to record the noncash transaction on January 31 change?