Gao Corporation was organized on January 1, 2011. It is authorized to issue 20,000 shares of 6%.

Question:

Gao was organized on January 1, 2011. It is authorized to issue 20,000 shares of 6%. HK$500 preference shares, and 500,000 shares of no-par ordinary shares with a stated value of HK$20 per share. The equity transactions shown below were completed during the first year.
Jan. 10 Issued 100,000 ordinary shares for cash at HK$30 per share.
Mar. 1 Issued 100,000 preference shares for cash at HK$550 per share.
Apr. 1 Issued 25,000 ordinary shares for land. The asking price of the land was HK$900.
The company’s estimate of the fair value of the land was HKSS5O.000.
May 1 Issued 75.000 ordinary shares for cash at HK$40 per share.
Aug. 1 Issued 10,000 ordinary shares to attorneys in payment of their bill for HK$500,000 for services provided in helping the company organize.
Sept. 1 Issued 5,000 ordinary shares for cash at HK$60 per share.
Nov. 1 Issued 2,000 preference shares for cash at FIK$580 per share.

Instructions
(a) Journalize the transactions.
(b) Post to the equity accounts. (Use JI as the posting reference.)
(c) Prepare the share capital section of equity at December 31, 2011.

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