E11-3 Reporting Shareholders' Equity, and Determining Dividend Policy LO11-1, 11-3 Sampson Corporation was organized this year to operate a financial consulting business. The charter authorized the issue of 9,000 common shares. During the first year, the following selected transactions were completed: a. Sold and issued 5,400 common shares for cash at $21 per share. b. Sold and issued 540 common shares for a piece of land to be used for a facilities site; construction began immediately. Assume the land was appraised at $11,340 and that the market price per share was $21 on the date of issuance. Debit the land account. c. Sold and issued 1,190 common shares for cash at $22 per share. d. At year-end, the statement of earnings showed a loss of $6,100. Because a loss was incurred, no income tax expense was recorded. Required: 1. Prepare the journal entry required for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet Transaction General Journal Debit Credit No 1 a. Cash Common shares 2 b Land Common shares 3 c Cash Common shares 4 d. Retained earnings Income summary 2. Prepare the shareholders' equity section as it should be reported on the statement of financial position at the end of the year. (Amounts of loss should be indicated with a minus sign.) SAMPSON CORPORATION Shareholders' Equity As at End of Year Share capital: Common shares Retained earnings Shareholders' equity $ 3. Can Sampson pay dividends at year-end? Yes