ACCA 205 PRACTICE QUESTION ISSUE OF SHARES Jan 1. The Star Traders Co. was formed with a total capital made up as follows: 2. 6. 8. 10. Sept. 18. 1,000,000 shares of common stock at $2 par 80,000 6% Preferred shares at $100 per share Issued 300,000 shares of common stock for cash at $8 per share. Purchased a building by issuing 10,000 shares of $2 par value common stock at the current market price of $10 per share. Issued common stock at a market price of $8 per share for the payment of incorporation expenses and legal fees amounting to $20,000 Issued 20,000 shares of 6% Preferred stock at a current market price of $105 per share. Paid a cash dividend on common stock @ $2 per share outstanding and the preference dividend due. The dividend is paid out of current year's net income.