Reference no: EM132564565
Question - Green Corporation is authorized to issue 150,000 common shares and 70,000, $1 preferred shares. At Jan 1, 2018, the company's shareholders equity included the below:
28,000 common shares valued at $224,000
7,500 preferred shares valued at $82,500
Retained Earnings was $58,000
During 2018 the net profit earned by Green Corp. was $31,000. The company did not issue any dividend during 2018. Also during 2018 the company issued the below:
On Apr 4, 2018 - 7,000 common shares for $14 each
On Jun 10, 2018 - 6,000 preferred shares for $18 each and
On Aug 7, 2018 - 14,000 common shares for land valued at $196,000.
Required - Prepare the journal entries to record the above share issues. Prepare the shareholders equity part of the balance sheet in Dec 31, 2018.