Welles plc was organized on January 1, 2017. It is authorized to issue 20,000 6%, £40 par value preference shares, and 500,000 no-par ordinary shares with a stated value of £1 per share. The following share transactions were completed during the first year.
Jan. 10 Issued 74,000 ordinary shares for cash at £3 per share.
Mar. 1 Issued 10,000 preference shares for cash at £43 per share.
Apr. 1 Issued 25,000 ordinary shares for land. The asking price of the land was £90,000. The company's estimate of fair value of the land was £75,000.
May 1 Issued 75,000 ordinary shares for cash at £4 per share.
Aug. 1 Issued 10,000 ordinary shares to attorneys in payment of their bill for £44,000 for services performed in helping the company organize.
Sept. 1 Issued 5,000 ordinary shares for cash at £6 per share.
Nov. 1 Issued 2,000 preference shares for cash at £45 per share.
Instructions
(a) Journalize the transactions.
(b) Post to the equity accounts. (Use J1 as the posting reference.)
(c) Prepare the share capital section of the statement of financial position at December 31, 2017.