Fierra Sceptre Inc. was authorized to issue 50,000 $1.50 preferred shares and 300,000 common shares. During 2014,

Question:

Fierra Sceptre Inc. was authorized to issue 50,000 $1.50 preferred shares and 300,000 common shares. During 2014, its first year of operations, the following selected transactions occurred:

Required
a. Journalize the above transactions.
b. Prepare the equity section of Fierra Sceptre Inc.€™s balance sheet at December 31, 2014.
c. The preferred shares are described as €œ$1.50 preferred shares.€ Explain what the $1.50means.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...