2. On January 1, 2015, Sizzlers Corporation was granted a charter that authorized the issuance of 100,000 shares of $5 par value ordinary shares and 20,000 shares of $80 par value, 6% cumulative and non-participating preference shares. During the year, the following transactions took place.

Jan 15 The Corporation issued 18,000 ordinary shares at $10 per share.

Feb 9 Issued 3,000 ordinary shares to attorneys in payment for services rendered in the companys incorporation. The bill amounted to $20,000.

Mar 21 4,000 preference shares were issued for cash at $90 per share.

April 4 Issued 9,000 ordinary shares for land to the founders of the corporation. The asking price of the land was $56,000; the fair value of the land was $63,000.

May 27 Purchased 5,000 ordinary shares at $12 per share. (Use the Cost method)

June 18 The Corporation issued 10,000 ordinary shares and 3,000 preference shares for a lump sum of $350,000. The ordinary share has a market value of $10 and the preference share has a market value of $120 per share.

Sept. 19 Sold the 5,000 treasury shares at $8 per share.

Dec 31 The Corporation declared $0.40 per cash dividend on its ordinary shares and declared the preference dividend.

Instructions

a) Record the journal entries for each transaction above. (25 marks)

b) Prepare the Equity Section of Sizzlers Corporation Statement of Financial Position as at December 31, 2015. (Note: On December 31, 2015, the Income Summary Account was closed with a Net Income of $250,600). (10 marks)