Question
Fuller Corporation has authorized share capital of an unlimited number of common shares and 800,000, $3 preferred shares. On January 1 2020, the balance in
Fuller Corporation has authorized share capital of an unlimited number of common shares and 800,000, $3 preferred shares. On January 1 2020, the balance in its shareholders equity includes: 24,000 common shares valued at $64,000, 2,200 preferred shares valued at $52,000 and Retained earnings of $116,000. Profit for the year ending December 31, 2020 was $42,000. No dividends were declared during 2020. During 2020, Fuller Corporation had the following share transactions: Mar 1 Issued 4,000 common shares for $6 each. Jun 30 Issued 1,200 preferred shares for $13 each. Sep 1 Issued 55,000 common shares in exchange for land valued at $250,000. Required: a) Journalize the share transactions. (6 marks) b) Prepare the equity section of Fuller Corporation balance sheet at December 31, 2020. (14 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started