Analyzing Various Equity Transactions Monsieur Company began its operations on January 1. Authorized were 20,000 shares of $ 10 par value ordinary shares and 40,000 shares of 10%, $ 100 par value preference shares. The following transactions involving shareholders' equity occurred during the first year of operations: Jan 1 - Issued 500 ordinary shares to the corporation promoters in exchange for property valued at $170,000 and services valued at $ 70,000. The property had cost the promotion $ 90,000 3 years before and was carried on the promoter's books at $ 50,000. Feb 23 Issued $ 10,000 preference shares with a par value of $ 100 per share. The shares were issued at a price of $150 per share and the company paid $ 75,000 to an agent for selling the shares. Mar 10 - Sold 3,000 ordinary shares for $390 per share. Issue costs were $25,000. Apr 10-4,000 ordinary shares were sold under share subscriptions at $ 450 per share. No shares are issued until a subscription contract is paid in full. No cash was received. Jul 14 - Exchanged 700 ordinary shares and 1,400 preference shares for a building with a fair market value of $ 510,000. The building was originally purchased for $380,000 by the investors and has a book value of $220,000. In addition, 600 ordinary shares were sold for $ 240,000 in cash. Aug 3-Received payments in full for half of the share subscriptions and payments on account on the rest of the subscriptions. Total cash received was $1,400,000. Shares were issued for the subscriptions paid in full. Dec 1-Declared a cash dividend of $ 10 per share on preference shares, payable on December 31 to shareholders of record on December 15, and a $20 per share cash dividend on ordinary shares, payable January 5 of the following year to shareholders of record on December 15. Dec 31 - Paid the dividends to the preference shareholders. Net income for the first year of operations was $600,000. Based on the above data, calculate the balances of each of the following accounts: 1. Preference shares 2. Ordinary shares 3. Share premium 4. Cash Dividends 5. Retained Earnings Present all solutions in proper accounting form. Analyzing Various Equity Transactions Monsieur Company began its operations on January 1. Authorized were 20,000 shares of $ 10 par value ordinary shares and 40,000 shares of 10%, $ 100 par value preference shares. The following transactions involving shareholders' equity occurred during the first year of operations: Jan 1 - Issued 500 ordinary shares to the corporation promoters in exchange for property valued at $170,000 and services valued at $ 70,000. The property had cost the promotion $ 90,000 3 years before and was carried on the promoter's books at $ 50,000. Feb 23 Issued $ 10,000 preference shares with a par value of $ 100 per share. The shares were issued at a price of $150 per share and the company paid $ 75,000 to an agent for selling the shares. Mar 10 - Sold 3,000 ordinary shares for $390 per share. Issue costs were $25,000. Apr 10-4,000 ordinary shares were sold under share subscriptions at $ 450 per share. No shares are issued until a subscription contract is paid in full. No cash was received. Jul 14 - Exchanged 700 ordinary shares and 1,400 preference shares for a building with a fair market value of $ 510,000. The building was originally purchased for $380,000 by the investors and has a book value of $220,000. In addition, 600 ordinary shares were sold for $ 240,000 in cash. Aug 3-Received payments in full for half of the share subscriptions and payments on account on the rest of the subscriptions. Total cash received was $1,400,000. Shares were issued for the subscriptions paid in full. Dec 1-Declared a cash dividend of $ 10 per share on preference shares, payable on December 31 to shareholders of record on December 15, and a $20 per share cash dividend on ordinary shares, payable January 5 of the following year to shareholders of record on December 15. Dec 31 - Paid the dividends to the preference shareholders. Net income for the first year of operations was $600,000. Based on the above data, calculate the balances of each of the following accounts: 1. Preference shares 2. Ordinary shares 3. Share premium 4. Cash Dividends 5. Retained Earnings Present all solutions in proper accounting form.