BATAM 19000 000 152000 Exercise 3 Moreland Holdings Inc. has authorized share capital of an unlimited number of common shares and 1,000,000 preferred, $3-cumulative preferred shares. At January 1, 2014, the balances in its share capital accounts were $45,000 in common shares representing 15,000 shares and $30,000 in preferred shares representing 1,000 shares. The retained earnings balance on that date was $180,000. Profit for the year ending December 31, 2014 was $24,000. There were no dividends in arrears at January 1, 2014 and no dividends were declared during 2014. During 2014, Moreland had the following share transactions: Mar 1 Issued 4,000 common shares for $5 each. Jun 30 Sep 1 Issued 500 preferred shares for $11 each. Issued 60,000 common shares in exchange for land valued at $285,000. 249000 Instructions a. Journalize the share transactions. b. Prepare the equity section of Moreland's balance sheet at December 31, 2014 and describe any additional disclosure required related to share capital. C. Calculate return on equity for 2014. 222 800 102 4000 a. Accounts Credit Date mar 1 Debit 1201000 cash Common (49000 X categories 20,000 Junso | Cash (500X11) Prefered Shares $2859000 Sep 1 land 2 X 580 commo shores