Fierra Sceptre Inc. was authorized to issue 50,000 $1.50 preferred shares and 300,000 common shares. During 2014, its first year of operations, the following selected transactions occurred:
Required a. Journalize the above transactions. b. Prepare the equity section of Fierra Sceptre Inc.’s balance sheet at December 31, 2014. c. The preferred shares are described as “$1.50 preferred shares.” Explain what the $1.50means.