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Banana Bay Corporation prepares financial statements under ASPE. On February 1, 2023, Banana received authorization to issue 400,000 no par value common shares. The
Banana Bay Corporation prepares financial statements under ASPE. On February 1, 2023, Banana received authorization to issue 400,000 no par value common shares. The following transactions occurred during 2023: Feb 24: Issued 100,000 common shares for cash at a price of $18 per share. Feb 28: Issued 50,000 common shares in exchange for a group of modular warehouses. Mar 28: Received subscriptions for 30,000 common shares at $18 per share. Collected down payment of 20% of the subscription price from the subscribers. Apr 15: Collected 50% of the subscription price from the subscribers. Apr 30: Collected the balance from the subscribers of 28,000 shares and issued the related shares. The remaining subscribers (of 2,000 shares) defaulted. The subscription agreement states that Banana will refund only the amount collected in excess of 20% of the subscription price. Nov 4: Issued 20,000 common shares at $24 per share. Required: Prepare the journal entries to record the transactions listed above.
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Here are the journal entries to record the transactions listed February 24 Cash 1800000 C...Get Instant Access to Expert-Tailored Solutions
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