I. Moon Corporation was organized on January 2, 2018 with 100,000 ordinary shares authorized with a $10 par value .

During 2018, Moon had the following stock transactions:

• January 2 Issued 35,000 shares at par.
• February 11 Issued 5,000 shares for an equipment with a fair value of $65,000.
• March 29 Received subscriptions for 15,000 shares at 120% of par value, the subscriptions will be due and payable on December 31, 2018.
• July 2 Received 40% payment of the subscriptions last March 29.
• August 31 Received in full payment of the 10,000 shares subscribed last March 29 and issued the certificates.

Prepare entries for the above transactions.

1. How many shares are issued and outstanding on August 31, 2018?

2. How much is the total contributed capital on August 31, 2018?

3. How much is the share premium on August 31, 2018?

4. Prepare the Shareholders' Equity section of the Statement of Financial Position as of August 31, 2018.

II. Zilong Company was organized on January 2, 2017 with 500,000 ordinary shares with a $6 par value

authorized. During 2017-2018, Zilong had the following stock transactions:

• Jan 2 Issued 60,000 shares at $10 per share.
• Mar 8 Issued 20,000 shares at $11 per share.
• Dec 31 Net income for the year $350,000.
• May 9 Purchased 7,500 at $8 per share as treasury .
• July 2 Purchased 5,000 at $13 per share as treasury.
• Aug 17 Sold 8,000 treasury shares at $12 per share.

Zilong uses the FIFO method for purchase-sale purposes.

Prepare entries for the above transactions.

1. How much would be the total balance of share premium at August 17, 2018?

2. How many shares are entitled to dividends if there was a cash dividend declaration on August 18, 2018?