Santiago Corp., a private corporation, received its articles of incorporation on January 3, 2017. It is authorized to issue an unlimited number of common shares and $1 preferred shares. It had the following share transactions during the year:
Jan. 12 Issued 50,000 common shares for $5 per share.
24 Issued 950 common shares in payment of a $4,500 bill for legal services.
July 11 Issued 1,000 preferred shares for $25 per share
Oct. 1 Issued 10,000 common shares in exchange for land. The land's fair value was estimated to be $55,000.
Santiago's accountant estimated that the fair value of the shares issued might be as high as $6 per share.
Instructions
(a) Journalize the share transactions.
(b) Calculate the average per share amount for the common shares.