Question: On June 3 0 , 2 0 2 3 , Wood Fire Limited was authorized to issue 6 0 , 0 0 0 shares of

On June 30,2023, Wood Fire Limited was authorized to issue 60,000 shares of $5 cumulative preferred shares and 250,000 common shares. During its start-up phase, the company engaged in several transactions.
Required
1. Prepare journal entries for the following transactions:
a. June 30: Sold 40,000 preferred shares at $110 per share.
b. June 30: Sold 50,000 common shares at $30 per share.
c. July 5: Issued 5,000 common shares in exchange for equipment valued objectively at $165,000.

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