Eagle Co. has the following transactions or 2022. Record the following transactions. No explanations needed.

 

Jun 1 Issued 2,000 common shares for $6 per share.

 

Dec 15 Issued an additional 1,000 shares for $9 per share. 

 

Record the entries:

Date 2022	Particulars	PR	Debit	Credit

 

What is the average cost per share after the December 15th transaction? 

 

2. Spiro Inc issues 5,000 common shares that have a current market value of $14 per share on Dec 20, in exchange for equipment, whose fair market value could not be determined. 

 

Record the entry.

 

Date 2022	Particulars	PR	Debit	Credit

 

 

3. Enviro Corp. reported the following information about its common shares at January 31. There were 35,000 shares issued, valued at $122,500.

 

On Feb 15, of the same year, it paid cash to reacquire 5,000 of these shares. This is the first time the company has reacquired any of its shares.

 

Journalize the reacquisition of the shares, assuming:

The company paid $15,000 to reacquire them. 

 

Date 2022	Particulars	PR	Debit	Credit

 

The company paid $20,000 to reacquire them. 

 

Date 2022	Particulars	PR	Debit	Credit

 

Part 2 - PREFERRED SHARES

 

The following items were shown on the balance sheet of McKean Corporation on December 31, 2022. Questions are on the next page.

 

Shareholders' Equity

Share Capital

Common shares, no par value, unlimited number of shares
Authorized:     shares issued $1,200,000

 

$2 preferred shares, no par value, redeemable at $120, cumulative,
20,000 shares authorized, 6,000 shares issued.     120,000

Total Share Capital $1,320,000

 

Retained Earnings     500,000

Total shareholders' equity $1,820,000

 

Questions: Assume all of the common shares were issued at $5 per share. 

The number of common shares issued was:

 

The preferred shares dividend was:

 

It would cost the company to redeem 1,000 preferred shares.

 

The average issue prices of the preferred shares was:

 

The total amount of cash and other assets paid to McKean Corporation, in exchange for share capital, at December 31, 2022 was: 

2) Gabriel Ltd. was incorporated February 1, 2022 and is authorized to issue an unlimited number of preferred and common shares. The company entered into the following transactions during the year.

 

Feb 10 Issued 30,000 common shares for $2.30 per share. 

 

Feb 21 Issued 4,000 common shares to the company's accountants as payment for a bill 

of $18,000 for services performed. 

 

March 16  Issued 1,000 preferred shares for $95 per share. 

 

Sept 10 Required 3,000 common shares for $1.75 per share. 

Date 2022	Particulars	PR	Debit	Credit

 

3) The preferred account has a balance of $100,000. There are 500 convertible preferred shares, each convertible to 4 common shares. On a day that the preferred shares have an average cost of $200 and a market value of $230, ½ of the preferred shares are converted to common shares. Common shares are trading at $60. Record the entry on Oct 18. 

 

Date 2022	Particulars	PR	Debit	Credit

 

Answer rating: 100% (QA)

Transaction 1 Date June 1 Event Issued 2000 common shares for 6 per share Journal Entry Cash Ac ... View the full answer