On June 30, 2023, Wood Fire Limited was authorized to issue 60,000 shares of $5 cumulative preferred

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Question:

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: June 30: Sold 40,000 preferred shares at $110 per share. June 30: Sold 50,000 common shares at $30 per share. July 5: Issued 5,000 common shares in exchange for equipment valued objectively at $165,000