1) Prepare the journal entries to record each of these transactions and to close the accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2) Prepare the shareholders equity section of the statement of financial position for King Corporation at the end of year 1

King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 8 percent, $26 par value, authorized 55,000 shares. Common shares: no par value, authorized 185,500 shares. During year 1, the following transactions occurred in the order given: a. Sold and issued 27,500 common shares to each of the three organizers. Collected $11 cash per share from two of the organizers, and received a plot of land with a small building on it in full payment for the shares of the third organizer and issued the shares immediately. Assume that 30 percent of the non-cash payment received applies to the building. b. Sold and issued 7,500 preferred shares at $26 per share. Collected the cash and issued the shares immediately. c. Sold and issued 3,500 preferred shares at $26 and 3,500 common shares at $14 per share. Collected the cash and issued the shares immediately. d. The operating results at the end of year 11 were as follows: Revenues Expenses, including income taxes $ 405,000 202,500