Chapter 11 Issuing shares Partners Vlad and Thao wish to avoid the unlimited personal liability of the partnership form of business, so they are incorporating their company as V & T Fabrication Inc. The charter from Manitoba authorizes the corporation to issue 30,000 shares of 8 percent, $50 stated preferred shares and 250,000 common shares. In its first month, V & T Fabrication Inc. completed the following transactions: Jan Issued 6,000 common shares to Vlad and 3,500 common shares to Thao, both for cash of $10 per share. 3 12 Issued 800 preferred shares to acquire a patent with a market value of $40,000. Issued 1,500 common shares to other investors for $11 cash per share. 22 Requirements

1. Record the transactions in the journal.

2. Prepare the shareholders' equity section of the V & T Fabrication Inc.'s statement of financial position at December 31. The ending balance of Retained Earnings is $62,000.

Chapter 11 Issuing shares Partners Vlad and Thao wish to avoid the unlimited personal liability of the partnership form of business, so they are incorporating their company as V \& T Fabrication Inc. The charter from Manitoba authorizes the corporation to issue 30,000 shares of 8 percent, $50 stated preferred shares and 250,000 common shares. In its first month, V \& T Fabrication Inc. completed the following transactions: Jan Issued 6,000 common shares to Vlad and 3,500 common shares to Thao, both for cash of 3$10 per share. 12 Issued 800 preferred shares to acquire a patent with a market value of $40,000. 22 Issued 1,500 common shares to other investors for $11 cash per share. Requirements 1. Record the transactions in the journal. 2. Prepare the shareholders' equity section of the V \& T Fabrication Inc.'s statement of financial position at December 31. The ending balance of Retained Earnings is $62,000