Santiago Corp., a publicly traded company, had 2,500 preferred shares issued with a balance of $55,000 and 140,000 common shares issued with a balance of $700,000 at the beginning of the year. The following share transactions occurred during the year:
June 12 Issued 50,000 common shares for $6 per share.
July 11 Issued 1,000 preferred shares for $25 per share.
Oct. 1 Issued 10,000 common shares in exchange for land. The common shares were trading for $7 per share on that date. The fair value of the land was estimated to be $75,000.
Nov. 15 Issued 25,000 preferred shares for $28 per share.
Instructions
(a) Record the above transactions.
(b) Calculate the number of shares and balance in the account for each of the preferred and common shares at the end of the year.