After incorporation on January 15, 2017, the only share capital issued by the privately-owned Sarasota Corporation is 1,000 common shares issued at $10 each. Sarasota reports under IFRS although it is allowed to follow ASPE. Other activity related to shareholder's equity is outlined below.

June 12 Issued 41,000 common shares for cash at $15 per share.

June 30 Issued 1,600 common shares to a law firm in settlement of their bill for $27,230. (Use Professional Fees Expense) On June 30, the shares had a fair value of $14 each.

July 11 Issued 1,400 preferred shares for $42 per share. Each share was convertible into 7 common shares.

Oct. 1 Issued 5,500 common shares in exchange for land. The common shares were trading at $13 per share on that date. The land's fair value was estimated to be $72,100.

Nov.15 Issued 1,600 preferred shares for $48 per share.

Nov. 22 Preferred shareholders converted 550 of the preferred shares into common shares. The fair values of the common and preferred shares on that day were $13.5 and $46.20 respectively.

Answer rating: 100% (QA)

Date Accounts Titles Explanation Debit Credit 12Jun Cash 615000 Common Stock 410000 Addit... View the full answer