Exit Submit Peterson Company was granted a charter that authorized the following share capital: Preferred shares: 14 percent, par value $42, 190,000 shares Common shares: No par value, 950,000 shares During the first year, the following selected transactions occurred in the order given. a. Sold 200,000 common shares at $120 cash per share and 39,000 preferred shares at $110 cash per share. Collected cash and issued the shares immediately. b. Sold and issued 19,000 preferred shares as full payment for a plot of land to be used as a future plant site. Assume that the shares were selling at $110. c. Declared and paid the quarterly cash dividend on the preferred shares. d. At the end of the year, the income summary account has a credit balance of $161,000.

Required: 1. Prepare the journal entries to record each of these transactions and to close the accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record issue of share capital for cash. 

2 Record issue of preferred shares in exchange for plant site. 

3 Record declared and paid quarterly cash dividend on preferred shares. Record closing entry for net earnings

Answer rating: 100% (QA)

1 Record issue of share capital for cash Common Shares no par 24000000 ... View the full answer