To raise cash for future expansion, Alex Kerr incorporated his

To raise cash for future expansion, Alex Kerr incorporated his proprietorship and created Kerr Consulting Corporation. Kerr Consulting Corporation is authorized to issue an unlimited number of common shares and 50,000 $2.00 preferred shares. On February 1, 2014,

Alex Kerr purchased 20,000 common shares for his proprietorship equity of $36,364 to maintain control of the company and issued 1,000 of the preferred shares for $50.00 per share. In March 2014, Kerr Consulting Corporation has the following transactions related to its common shares:

Mar. 3 The company sold 1,000 of its common shares for $10.00 per share to a small number of people who believed in the company's potential for profit.

20 The company repurchased 100 of its common shares for $12.00 per share from a shareholder who was having financial difficulties.

30 The company sold 100 shares for $15.00 per share.


1. Journalize the entries related to the transactions.

2. Calculate the ending balance in the Common Shares account.

A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...


  • Access to 2 Million+ Textbook solutions
  • Ask any question from 24/7 available



Get help from Accounting Tutors
Ask questions directly from Qualified Online Accounting Tutors .
Best for online homework assistance.