Question: Luis SLU is authorized to issue 1,000,000 R$5 par value ordinary shares. Jan. 10 Issued 400,000 ordinary shares at R$8 per share. July 1 Issued

Luis SLU is authorized to issue 1,000,000 R$5 par value ordinary shares.

Jan. 10 Issued 400,000 ordinary shares at R$8 per share.

July 1 Issued 100,000 ordinary shares for land. The land had an asking price of R$900,000. The shares are currently selling on a national exchange at R$8.25 per share. Sept. 1 Purchased 10,000 ordinary shares for the treasury at R$9 per share

. Dec. 1 Sold 4,000 treasury shares at R$10 per share. Instructions:

1. Prepare the journal entries for the transactions.

2. Prepare the equity section assuming the company had retained earnings of R$200,000 at December 31

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