Wetland Corporation, a publicly traded company, was organized on June 1, 2011. It is authorized to issue an unlimited number of no par value $4 cumulative preferred shares and an unlimited number of no par value common shares. The following share transactions were completed during the company's first year of operations:
June 5 Issued 80,000 common shares for $4 per share.
Aug. 21 Issued 5,000 preferred shares for $55 per share.
Sept. 15 Issued 22,000 common shares in exchange for land. The asking price of the land was $100,000 and the fair value was $95,000. The common shares were trading for $4.25 per share on this date.
Nov. 20 Issued 78,000 common shares for $4.50 per share.
Jan. 12 Reacquired and retired 80,000 common shares for $4 per share. (Round the average cost per share to the nearest cent).
Mar. 9 Issued 10,000 common shares for $5 per share.
Apr. 16 Issued 2,000 preferred shares for $60 per share.
May 15Declared the annual preferred dividend to the preferred shareholders, to shareholders of record on May 30, payable on June 10.
31 Reported profit of $250,000 for the year.
Instructions
(a) Record the above transactions for the year ended May 31, 2012, including any required closing entries.
(b) Open T accounts and post to the shareholders' equity accounts.
(c) Prepare the shareholders' equity section of the statement of financial position at May 31, 2012.