equity trasnction

journal entry

Question 1 21 po Equity transactions (21 marks) Rawabi Corporation had the following information for the year ended 31/12/2018: The articles of incorporation authorize 10,000,000 shares of common stock with a par of 51 per share and 1,000,000 preferred shares with a par of 100 per share. Common stock 2 million shares at $1 par $2,000,000 Pald.in capital-excess of par (8 per par) 16,000,000 Retained earnings 12,000,000 During 2019, Rawabl Corporation, completed the following transactions relating to shareholders equity. 1) 1,000 preferred shares are sold for cash at $120 per share. 2) Services associated with starting the company is $115,000, so the company issues 10,000 common shares and 50 preferred shares to its services. At that time, the common shares were selling at $10 per share. 3) Rawab Corporation issued 150,000 common shares for land valued by appraisal at $200,000 4) The company purchase 2,000 shares for $8 per share under share retirement method, the shares were originally sold during the prior year 2018 for $9 each 5) The company purchased back 5,000 treasury stocks for $8 each 6) 3,000 shares of the treasury stocks were reissued for $6 each. Question 1 21 pa Equity transactions (21 marks) Rawabi Corporation had the following information for the year ended 31/12/2018: The articles of incorporation authorize 10,000,000 shares of common stock with a par of $1 per share and 1,000,000 preferred shares with a par of $100 per share. Common stock, 2 million shares at $1 par $2,000,000 Paid-in capital-excess of par (8 per par) 16,000,000 Retained earnings 12,000,000 During 2019. Rawabi Corporation, completed the following transactions relating to shareholders' equity. 1) 1,000 preferred shares are sold for cash at $120 per share. 2) Services associated with starting the company is $115,000, so the company issues 10,000 common shares and 50 preferred shares to its services. At that time, the common shares were selling at $10 per share. 3) Rawal Corporation issued 150,000 common shares for land valued by appraisal at $200,000 4) The company purchase 2,000 shares for $8 per share under share retirement method, the shares were originally sold during the prior year 2018 for $9 each. 5) The company purchased back 5,000 treasury stocks for $8 each. 6) 3,000 shares of the treasury stocks were reissued for $6 each