Pool Corporation is authorized to issue an unlimited number of common shares and $1,000,000$ shares of preferred shares. During $2023,$ its first year of operation, the company had net income of $$200,000.$ The following share transactions occurred:

Jan $1$ Paid the province $$2,000$ for incorporation fees.

Jan $15$ Issued $500,000$ of $ $1$ cumulative preferred shares at $ $7$ per share.

Jan $30$ Lawyers for the company accepted $500$ common shares as payment for legal services provided in helping the company incorporate. The legal services are estimated to have a value of $ $5,000.$ The shares were actively trading at $ $10\mathrm{.}50$ per share.

Jul $2$ Issued $100,000$ common shares for land. The land had an asking price of $ $900,000$ and its appraised value was $$800,000.$

a$)$ Journalize the transactions for Pool Corporation.

b$)$ Prepare the shareholders$$ equity section of the balance sheet, Pool has a December $31$ year$-$end.

Answer rating: 100% (QA)

a Journalize the transactions for Pool Corporation Jan 1 Debit Incorporation Fees Expense 2000 Credi... View the full answer