Chapter 15: Equity: In-Class Exercise On January 1st,2015, Phelps Corporation has been authorized to issue 100,000 ordinary shares of $100 par value and 10,000,$200 par value, 8% cumulative preference shares. By December 3151,2015, it has a retained earnings balance of $250,000. During 2015, Phelps completed the following transactions: Requirements: Prepare journal entries for all transactions below (1-11) 1. Jan 1st, Phelps issued 60,000 ordinary shares at $150 per share for cash 2. Feb 2ndid, Phelps issued 7,500 preference shares at $250 per share for cash 3. Mar 4th, Phelps issued 5,000 ordinary shares for non-cash (Land). The land was appraised by $650,000, while the fair market value of the land is $525,000 whereas shares were trading at $125. 4. Apr 9th, Phelps issued 2,000 ordinary shares and 1,000 preference shares for a lump sum purchase of $1,500,000. At this date, the fair market value of the ordinary shares is $150 per share and the fair market value of the preference shares is $300 per share (proportional method). Allocate the lump sum amount for both ordinary and preference shares 5. May 1st, Phelps repurchased back (treasury shares) at cash 8,000 ordinary shares of its own shares at $125 per share. 6. June 15th, Phelps resold 100 of the treasury shares at $115 per share for cash 7. July 1st, Phelps resold 1500 of the treasury shares at $140 for cash. 8. July 15th, Phelps announced $50,000 cash dividends whereas Aug 15th is the date of record and dividends are payable on Sep 1st.. 9. July 20m., Phelps announced @ 1,750,000 cash dividends of which $250,000 is liquidating dividends. 10. Summarize the equity to be reported in the balance sheet as of Dec 2015