Question: Question Three (25 points) (Smarks each) Max Corp. was organized on January 1, 2012. It is authorized to issue 400,000 shares of 8%, $100 par

Question Three (25 points) (Smarks each) Max Corp. was organized on January 1, 2012. It is authorized to issue 400,000 shares of 8%, $100 par value preference shares, and 1,300,000 shares of ordinary shares with a par value of $2 per share. The following share transactions were completed during the first year. Feb. Ist Issued 100,000 ordinary shares for cash at $8 per share. Feb. 2nd Issued 20,000 ordinary shares to lawyer in payment of their fees of $70,000 for services rendered in helping the company organize. Apr. 10th Issued 80,000 ordinary shares for cash at $5 per share. Jun. 15th Issued 20,000 preference shares for cash at $140 per share. Jun. 20th Issued 45,000 ordinary shares for Equipment. The asking price of the equipment was $200,000; the fair value of the equipment was $160,000. Instructions Prepare the journal entries to record the above transactions

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