Accounts

Problem 11-2A Lawn Corporation, a publicly traded company, was organized on January 1, 2018. It is authorized to issue an unlimited number of $3 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations Jan. 10 Issued 1,000,000 common shares for $2 per share Mar 1 Issued 20,000 preferred shares for $50 per share. May Issued 250,000 common shares for $3 per share. June Reacquired and retired 9,000 common shares at $2 per share. Determine the average cost of each reacquired share to the nearest cent before recording this transaction, July 24 Issued 35,900 common shares for $109,000 cash and used equipment. The equipment originally cost $30,000. It now has a carrying amount of $15,000 and a current value of s16,100. The common shares were trading for $4 per share on this date. Sept. 4 Issued 10,000 common shares for $5 per share Nov. 1Issued 4,300 preferred shares for $50 per share. 20 Reacquired and retired 16,000 common shares at $4 per share. Determine the average cost of each reacquired share to the nearest cent before recording this transaction 14 31 Dec. Declared a $65,000 cash dividend to the preferred shareholders, to shareholders of record on December 31, payable on January 10