Reference no: EM132576658

Question - Mark Inc. has authorized share capital of an unlimited number of common shares and 1,000,000 preferred, $3 preferred shares. At January 1, 2019, the balance in its shareholders equity includes $45,000 in common shares representing 15,000 shares and $30,000 in preferred shares representing 1,000 shares and retained earnings of $185,000. Profit for the year ending December 31, 2019 was $30,000. No dividends were declared during 2019.

During 2019, Mark Inc. had the following share transactions:

Mar 1 Issued 4,000 common shares for $7 each.

Jun 30 Issued 500 preferred shares for $11 each.

Sep 1 Issued 60,000 common shares in exchange for land valued at $285,000.

Required -

a) Journalize the share transactions.

b) Prepare the equity section of Mark Inc. balance sheet at December 31, 2017 and describe any additional disclosure required related to share capital.