1 Problem 1: 2 3 The Highland Corporation was organized on January 1, 2022. 4 It is authorized to issue 20,000 shares of no par value preferred shares with a $3 dividend rate 5 and 500,000 no par value common shares. The following transactions were completed during the first year. 6 T Jan. 10 Issued 100,000 common shares for cash at $3 per share. 9 Mar. 1 Issued 10,000 preferred shares for cash at $52 per share. 10 11 Apr. 1 12 Issued 25,000 common shares for land. The fair market value of the land was $85,000 The market value of the common shares was $3.50 per share on this date. 13 14 May 1 Issued 75,000 common shares for cash at $4 per share. 15 16 July 24 17 18 19 20 Sept. 1 21 22 23 24 Nov. 1 25 Issued 10,000 common shares to lawyers in payment of their bill of $50,000 for services rendered in helping the company organize. The market value of the shares was $4.50 on this date. Issued 5,000 common shares at $6 per share for used equipment. The equipment originally cost $40,000. It now has a net book value of $28,000 and a fair market value of $25,000. Issued 2,000 preferred shares for cash at $54 per share. 26 27 28 29 30 31 32 33