Reference no: EM132733226

Problem 1: Wong Incorporated is authorized to issue an unlimited number of no par value common shares. Record the journal entries for the following:

a) Issued 2 000 shares at $11 per share.

b) Issued 300 shares to the lawyer for a $2 800 legal bill.

c) Issued 7 000 shares for land with a fair market value of $83 000.

d) Executed a 2 for 1 common stock split.

Problem 2:  Lesinski Limited is authorized to issue 50 000, $5 par value common shares. Record the journal entries for the following:

a) Issued 1 000 shares at par value.

b) Issued 200 shares at $7 per share.

c) Reacquired 500 shares at par value.

Problem 3: Shaky Holdings Inc. is authorized to issue 20 000 convertible preferred shares with a par value of $10 and an unlimited number of no par value common shares. The preferred shares can be converted into common shares at a ratio of 1:3.

a) Issued 10 000 preferred shares at par value.

b) Exchanged 1 000 common shares for a computer valued at $1 240.

c) Our legal fees for our organizational costs were $1 200. We issued 120 shares of preferred stock to our lawyers.

d) We sell 20 000 shares of common stock for $1.40 per share.

e) We sell 1 000 shares of preferred stock at $12 each.

f) We purchase 1 200 of our preferred shares back at par value.

g) One of our shareholders exercises their option and converts 1 000 preferred shares for common stock.

h) Executed a 2 for 1 common stock split.