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Buffalo Transport Inc. had the following selected transactions during the fiscal year ending December 31, 2020. The articles of incorporation authorize an unlimited number of

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Buffalo Transport Inc. had the following selected transactions during the fiscal year ending December 31, 2020. The articles of incorporation authorize an unlimited number of common and preferred shares. December 31, 2020 was the end of its first year of operations. 2020 January 1 Issued 50,000 Common shares for $475,000 Cash. March 1 Issued 12,000 preferred shares for $86,000 Cash. March 15 Received subscriptions for 20,000 common shares at $6.00 per share and collected 60% of the subscription price. Shares will not be issued until cash is collected in full. April 1 Acquired and retired 6,000 Common shares at $7 per share. October 10 Collected the balance on subscriptions receivable from March 15. Required: 1. Prepare Journal entries for the transactions listed above. (12 marks) 2. Prepare the equity section only of the Statement of Financial Position on December 31 2020. Net income for the year was $38,275. (6 marks) Show and label all calculations. Format Q > BI U Buffalo Transport Inc. had the following selected transactions during the fiscal year ending December 31, 2020. The articles of incorporation authorize an unlimited number of common and preferred shares. December 31, 2020 was the end of its first year of operations. 2020 January 1 Issued 50,000 Common shares for $475,000 Cash. March 1 Issued 12,000 preferred shares for $86,000 Cash. March 15 Received subscriptions for 20,000 common shares at $6.00 per share and collected 60% of the subscription price. Shares will not be issued until cash is collected in full. April 1 Acquired and retired 6,000 Common shares at $7 per share. October 10 Collected the balance on subscriptions receivable from March 15. Required: 1. Prepare Journal entries for the transactions listed above. (12 marks) 2. Prepare the equity section only of the Statement of Financial Position on December 31 2020. Net income for the year was $38,275. (6 marks) Show and label all calculations. Format Q > BI U

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