UDM Corporation is authorized by its article to issue 100000 shares of $4 preferred shares and an authorized number of common shares of 1 million shares. The company has already issued 75000 common shares by the beginning of the year. The table below shows the transactions that occurred during the first two years of the company’s operations:

The year 2019

Jan 2	Issued 8000 common shares at $3 per share
Feb 15	Paid the promoters $ 7500 in cash
April 30	Issued 10000 common shares in exchange for equipment valued at $52000 and land valued at $60000 and purchased the building for 95000 cash
May 31	Paid suppliers $2250 in kind
June 30	Sold 9000 common shares for $25000
August 31	Issued 5000 preferred shares for cash $30 per share.
Sept 10	The Board of directors declared a cash dividend of $ 0.50 to common shareholders and also declared a dividend for preferred shares
Dec 31	Paid the dividend both to common shareholders and preferred shareholders
December 31	Closed the account with a $52000 balance in the income summary To the Retained earnings

REQUIRED

1. Journalize the transactions, Make a statement of earnings. The company had a balance of $32000 for last year, Give the equity section of the balance sheet

Answer rating: 100% (QA)

UDM CORPORATION JOURNAL ENTRIES DATE PARTICULARS 01012019 CASH AC DEBIT 30000000 TO SHARE CAPITAL 30... View the full answer