Question
Bike Inc. was incorporated on January 1, 2020 and was authorized under its charter to issue the following shares 125,000 non-cumulative, non-voting 5% perferred shares
| Bike Inc. was incorporated on January 1, 2020 and was authorized under its charter to issue the following shares | |||||||||||
| 125,000 non-cumulative, non-voting 5% perferred shares and an unlimited number of no par-value voting common shares | |||||||||||
| Requirement: Prepare journal entries for the following transactions: | |||||||||||
| a. Issued 5,000 preferred shares for $10 cash each on January 3, 2020 | |||||||||||
| b. Issued 1,500 common shares for $8 cash each on January 3, 2020 | |||||||||||
| c. Issued 5,000 preferred shares for $9 cash each on January 14, 2020 | |||||||||||
| d. Issued 1,500 common shares for $7 cash each on August 2, 2020 | |||||||||||
| e. Issued 750 preferred shares for equipment valued at $7,250 on December 20, 2020 |
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