Assignment on EQUITY Question 1 Use information provided below to answer the questions that follow UDM Corporation is authorized by its article to issue 100000 shares of $4 preferred shares and an authorized number of common shares of 1 million shares. The company has already issued 75000 common shares by the beginning of year. The table below shows the transactions that occurred during the first two years of the companys operations:

Year 2019 Jan 2 Issued 8000 common shares at $3 per share Feb 15 Paid the promoters $ 7500 in cash

April 30

Issued 10000 common shares in exchange for a equipment valued at $52000 and land valued at $60000 and purchased building for 95000 cash

May 31 Paid suppliers $2250 in kind June 30 Sold 9000 common shares for $25000 August 31 Issued 5000 preferred shares for cash $30 per share. Sept 10 Board of directors declared cash dividend of $ 0.50 to common shareholders and also declared dividend for preferred shares Dec 31 Paid the dividend both to common shareholder and preferred

shareholders

December 31 Closed the account with $52000 balance in the income summary

To the Retained earnings

REQUIRED (A) Journalize the transactions (B) Make a statement of earnings. The company had a balance of $32000 for last year (C) Give the equity section of the balance sheet