Franklin Technologies Inc., incorporated under the Canada Business Corporations Act, had three transactions during the year ended December 31, 2014, involving its common shares.
On January 15, 2014, 50,000 Class A voting shares were issued at their stated value of $8.00 per share. On February 28, 2014, 10,000 Class B nonvoting shares were issued at their stated value of $10.00 per share. On August 8, 2014, 15,000 Class B shares were issued in exchange for land with a market value of $165,000. Franklin's articles of incorporation state that 100,000 Class A voting and 200,000 Class B nonvoting common shares are authorized.
Required
1. Prepare the journal entry to record the transaction of January 15, 2014.
2. Prepare the journal entry to record the transaction of February 28, 2014.
3. Prepare the journal entry to record the transaction of August 8, 2014.
4. Create the shareholders' equity section for Franklin Technologies Inc. after the three transactions have taken place. Assume retained earnings were $100,000 at this time.
5. What was the average issue price of each Class B common share?
6. How did Franklin Technologies Inc. withhold the voting privilege from its Class B common shareholders?