Reference no: EM132896267

Question - Sunny Sails was incorporated on January 1, 2020 and was authorized under its charter to issue the following shares:  25,000 non-cumulative, non-voting 5% preferred shares and an unlimited number of no par-value voting common shares.

Requirement - Prepare journal entries for the following transactions:  

a. Issued 5,000 preferred shares for $8 cash each on January 3, 2020.

b. Issued 1,500 common shares for $2 cash each on January 3, 2020.

c. Issued 5,000 preferred shares for $6 cash each on January 14, 2020.

d. Issued 1,500 common shares for $2 cash each on August 2, 2020.

e. Issued 750 preferred shares for equipment valued at $11,250 on December 20, 2020.