Eddie Edwards Limited, a public company, was formed on January 2, 2014, with the following authorized capital

Question:

Eddie Edwards Limited, a public company, was formed on January 2, 2014, with the following authorized capital structure:
Preferred shares: No par value, $ 1.00 per share quarterly cumulative callable at 103, 100,000 shares
Common shares: Unlimited number of shares
The following selected transactions occurred during the first six months of operations:
January 2 Issued 100,000 common shares in exchange for land and building with a combined appraised value of $ 2,200,000. Sixty percent of the acquisition cost is attributable to the building.
January 3 Issued 50,000 preferred shares for $ 1,250,000 cash.
April 1 Declared the quarterly cash on the preferred shares, payable on April 25.
April 10 Declared and distributed a 5 percent on all outstanding common shares as of March 31. The market price of the common shares on March 31 was $ 24 per share.
April 25 Paid the preferred that was declared on April 1.
Required:
1. Prepare journal entries to record the above transactions.
2. Prepare the shareholders’ equity section of the statement of financial position for Eddie Edwards Limited as at June 30, 2014. Assume that the company recorded net earnings of $ 500,000 for its first six months. Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
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