Question
1. Pelican Corporation was organized on January 1, 2021, with 700,000 authorized $5 par common shares and 100,000 authorized $15 par preferred shares. During 2021
1. Pelican Corporation was organized on January 1, 2021, with 700,000 authorized $5 par common shares and 100,000 authorized $15 par preferred shares. During 2021 (the first year of operations), the corporation had the following capital transactions:
January 1 Issued 370,000 common shares and 85,000 preferred shares for $15,792,000
March 31 Issued 25,000 shares of common stock in exchange for land apprised at $675,000. The stock was actively trading at $28 per share on March 31.
July 31 Repurchased 135,000 shares of common stock at $32 per share
September 20 Sold 33,000 treasury shares at $33 per share
December 20 Sold 90,000 treasury shares at $29 per share
a. (6%) On January 1, 2021, the common stock was valued at $23 per share and the preferred stock value was unknown. Prepare the entry to record the stock issuance on January 1, 2021.
b. (4%) Prepare the journal entry to record the land acquisition on March 31.
c. (2%) Prepare the journal entry to record the repurchase of shares on July 31.
d. (6%) Prepare the journal entries to record the sales of shares on September 20 and December 20.
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