Reference no: EM132598793

Question - Monty Corporation, a private corporation, was organized on February 1, 2016. It is authorized to issue 100,000, $6 noncumulative preferred shares, and an unlimited number of common shares. The following transactions were completed during the first year:

Feb. 10 Issued 80,000 common shares at $5.50 per share.

Mar. 1 Issued 4,900 preferred shares at $112 per share.

Apr. 1 Issued 22,300 common shares for land. The land's asking price was $133,650 and its appraised value was $122,650.

June 20 Issued 79,000 common shares at $4.50 per share.

July 7 Issued 10,500 common shares to lawyers to pay for their bill of $47,250 for services they performed in helping the company organize.

Sept. 1 Issued 12,000 common shares at $5.50 per share.

Nov. 1 Issued 1,200 preferred shares at $120 per share.

Required -

a) Journalize the transactions.

b) Open general ledger accounts and post to the shareholders' equity accounts.

c) Determine the number of shares issued and the average per share for both common and preferred shares.

d) How many more shares is the company authorized to issue for each class of shares?