1. ABC Co.. began operations on June 5, 2020.

2020

June

5

Gave 4,000 common shares to the organizers of the corporation in exchange for accounting and legal services valued at $85,200.

15

Received $23 cash per share for the issuance of 82,000 common shares.

16

Issued 10,000 preferred shares for cash of $46 per share.

17

8,000 common shares were issued to a creditor who was owed $137,000.

18

The board of directors declared a cash dividend of $20,200 on the preferred shares and $5,700 on the common shares to shareholders of record on June 20, payable July 1.

30

157,000 common shares were issued in exchange for machinery with a fair market value of $2,869,000. The shares were actively trading on this date at $17.00 per share.

July

1

The dividends declared on June 18 were paid.

Required:

Journalize the above equity transactions that occurred during the first month of operations. Cash dividend account is used for declaring dividends. (16 POINTS)

1. ABC Co.. began operations on June 5, 2020. 2020 Jun 5 Gave 4.000 common shares to the organizers of the corporation in exchange for accounting and legal services e valued at $85.200. Received $23 cash per share for the issuance of 82,000 common shares. Issued 10,000 preferred shares for cash of $46 per share. 8,000 common shares were issued to a creditor who was owed $137,000. 1 The board of directors declared a cash dividend of $20,200 on the preferred shares and $5.700 on the common 8 shares to shareholders of record on June 20. payable July 1. 3 157,000 common shares were issued in exchange for machinery with a fair market value of $2,869,000. The O shares were actively trading on this date at $17.00 per share. July 1 The dividends declared on June 18 were paid. Required: Journalize the above equity transactions that occurred during the first month of operations. Cash dividend account is used for declaring dividends. (16 POINTS) No General Journal Debit Credit 1 June 05, 2020 Date 2 June 15, 2020 3 June 16, 2020 4 June 17, 2020 5 June 18, 2020 6 June 30, 2020 7 July 01, 2020