Question
Gao Limited was organized on January 1, 2017. It is authorized to issue 10,000 8%, HK$1,000 par value preference shares, and 500,000 no-par ordinary shares
Gao Limited was organized on January 1, 2017. It is authorized to issue 10,000 8%, HK$1,000 par value preference shares, and 500,000 no-par ordinary shares with a stated value of HK$20 per share. The following share transactions were completed during the first year.
Jan. 10 Issued 100,000 ordinary shares for cash at HK$48 per share.
Mar. 1 Issued 5,000 preference shares for cash at HK$1,050 per share.
Apr. 1 Issued 18,000 ordinary shares for land. The asking price of the land was HK$980,000. The fair value of the land was HK$920,000.
May 1 Issued 80,000 ordinary shares for cash at HK$45 per share.
Aug. 1 Issued 10,000 ordinary shares to attorneys in payment of their bill of HK$320,000 for services provided in helping the company organize.
Sept. 1 Issued 10,000 ordinary shares for cash at HK$50 per share.
Nov. 1 Issued 1,000 preference shares for cash at HK$1,060 per share.
(c) Prepare the share capital section of the statement of financial position at December 31, 2017.
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