BUSI 1043: INTRODUCTION TO FINANCIAL ACCOUNTING Case 2 - Marks 100 (5%) Student Name and ID See: Question 1 Blue Corporation purchased a machine for S224,000 on September 1, 2019, by paying 20% down payment in cash and signing a 6%, 8. month note payable for the balance amount. Interest and principle will be paid back together at the end of the note. Prepare all relevant journal entries. Answer: Due Debit Chat Question 2 Green Corporation is authorized to issue 120,000 common shares and 80,000, S4 preferred shares. At Jan 1, 2018, the company's shareholders equity included the below: 24,000 common shares valued at $192,000 7,000 preferred shares valued at $77,000 Retained earning was $54,000 During 2018 the net profit earned by Green Corp. was $23,000 The company did not issue any dividend during 2018. Also during 2018 the company issued the below: On Apr 4, 2018 - 9,000 common shares for $10 each On Jun 10, 2018 - 4,000 preferred shares for $16 each and On Aug 7, 2018 - 11,000 common shares for land valued at $121,000. a. Prepare the journal entries to record the above share issues. b. Prepare the shareholders equity part of the balance sheet in Dec 31, 2018 Answer: a. Account Chedi b