Santiago Corp., a private corporation, received its articles of incorporation on January 3, 2024. It is authorized

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Santiago Corp., a private corporation, received its articles of incorporation on January 3, 2024. 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.

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Related Book For  book-img-for-question

Accounting Principles Volume 2

ISBN: 9781119786634

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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