Reference no: EM132833727

Question -

Q1. The corporate charter of Hunter Corporation allows the issue of a maximum of 2,000,000, no par value, common shares. During its first three years of operation, Hunter issued 1,200,000 shares at $15 per share. In 2001, Hunter issued an additional 5,000 shares in return for equipment with a market value of $75,000. The market price of the shares was $16 at the time of the sale. Based on the above information, answer the following questions:

(a) How many shares are authorized?

(b) How many shares are issued?

(c) What is the value of the Common Shares account at the end of 2001?

Q2. Peppino Corporation is authorized to issue an unlimited number of no par value common shares and 1,000,000 shares of no par value preferred shares. During 2001, its first year of operation, the company has the following share transactions.

-Jan. 15 Issued 500,000 preferred shares at $7 per share. Cumulative dividends not yet declared were $1/share.

-Jan. 30 Lawyers for the company accepted 500 common shares as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $6,000. The shares were actively trading at $10 per share.

-July 2 Issued 100,000 common shares for land. The land had an asking price of $900,000. The shares are currently selling on a provincial exchange at $8 per share.Journalize the transactions for Peppino Corporation.