Manfred Incorporated is authorized to issue 70,000 no par value, $6 cumulative preferred shares, and an unlimited number of no-par value common shares. The following transactions (among others) occurred during the first year of operations: 

Jan. 4 Issued 10,000 common shares to the organizers of the corporation in exchange for accounting and legal services valued at $50,000 

Jan. 6 Issued for cash 20,000 common shares at $12 per share.

Jun. 4 Acquired land valued at $49,000 in exchange for 3,500 preferred shares. 

Nov. 15 The first annual dividend was declared on the preferred shares of $6. It is to be paid on December 20th. 

Dec.20 Paid the cash dividend declared on November 15th. 

Dec.31 Closed the income summary account which has a credit balance of $146,000.

Dec. 31     Closed the dividend accounts.

Required:

Record the above journal entries 

Prepare the equity section of Modern Electronics' balance sheet at December 31, 2020

Answer rating: 100% (QA)

Account titles and explanation Debit Credit Jan 4 Accounting and legal services ... View the full answer