2)

During its first-year operations, ABC Plc. entered into the following transactions relating to stockholders equity. The article of incorporation authorized the issuance of 8 million ordinary shares, $1 par value, ad 1 million preference shares, $50 par per share.

Required prepare the appropriate journal entries to record each transaction

a) Sold 2 million ordinary shares, for $9 per share.

b) Sold 80,000 of its ordinary and 4,000 preference shares for a total of $945,000.

c) Issued 380,000 of its ordinary shares in exchange for equipment for which the fair value is known to be $3,688,000.

d) Purchased 100,000 of its shares (treasury shares) at $15 per share.

e) Sold 500 treasury shares at $20 per share.