Afrikana Crafts Inc. had the following transactions related to common shares

Jan 5 Issued 25,000 common shares for $2 per share.

Mar 10 Issued 10,000 common shares in exchange for land. The land was valued at $25,000.

Apr 21 Issued 2,500 common shares to settle legal expenses of $7,500.

Oct 5 Issued 5,000 common shares for $3.50 per share.

Instructions

(a) Journalize the share transactions. (8 marks)

(b) Calculate the average cost of Afrikanas common shares, assuming the company has a December 31 year-end. (4 marks)