Reference no: EM133040668

Problem - Velor Inc. began a very lucrative consulting operation on October 1, 2014. They are authorized to issue 550,000 shares of $4.00 cumulative preferred shares. They are also authorized to issue 600,000 common shares.

a. October 14: 13,000 common shares were issued in exchange for land valued at $65,000.

b. October 22: 8,000 of the common shares were issued for a total of $24,800 cash.

c. October 23: Gave the corporation's promoters 11,000 common shares for their services in organizing the corporation. The directors valued the services at $32,000.

d. October 28: Issued 10,000 preferred shares at $4.02 per share for cash.

e. October 29: 7,000 of the preferred shares were issued for a total of $20,300 cash.

f. October 31: In addition to the declaration of the annual dividend on the preferred shares, dividends of $41,600 were declared on the common shares today.

Required - Prepare journal entries for the above transactions, entering the transaction letter as the explanation. Also, enter dates in the format dd/mmm (i.e., 15/Jan).