P$10-2($Algo$)$ Preparing the Shareholders$$ Equity Section after Selected Transactions LO$10-3,10-7,10-8$

King Corporation began operations in January, year $1.$ The charter authorized the following share capital:

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Preferred shares: $9$ percent, $$28$ par value, authorized $54,000$ shares

Common shares: no par value, authorized $184,500$ shares

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During year $1,$ the following transactions occurred in the order given:

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Sold and issued $27,000$ common shares to each of the three organizers. Collected $$10$ cash per share from two of the organizers, and received a plot of land with a small building on it in full payment for the shares of the third organizer and issued the shares immediately. Assume that $35$ percent of the non$-$cash payment received applies to the building.

Sold and issued $7,400$ preferred shares at $$28$ per share. Collected the cash and issued the shares immediately.

Sold and issued $3,400$ preferred shares at $$28$ and $3,400$ common shares at $$13$ per share. Collected the cash and issued the shares immediately.

The operating results at the end of year $1$ were as follows:

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$$Revenues$$400,000$Expenses, including income taxes$205,000$

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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.$)$

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$2.$ This part of the question is not part of your Connect assignment.

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$3.$ Prepare the shareholders$$ equity section of the statement of financial position for King Corporation at the end of year $1.$