INTERMEDIATE ACCOUNTiNG -2 5. Krusty Krab Corporation was organized on January 1, 2020. The firms charter authorized the issuance of the following: 18% cumulative preference shares P 100 per 20,000 shares and Ordinary shares, no par, 50,000 shares. The board of directors has established a 50 stated value on ordinary shares. Jan 01: Paid for organization expenses amounting 120,000 Jan 05: The organizers subscribed to ordinary shares to comply with the preincorp0ration requirement {25% subscribed}. They gave 25% down payment. The organizer also subscribed to 5.000 preferences share at par and paid 50%. Jan 30: Sold T50 shares of preference shares to E DI SA PUSG MO Corporation for 105 per share. Gash was received anr;I the shares were issued. Feb 21 : Fleceived land costing 50,000. Appraised market value of land is 220% of the original cost. 500 preference shares were issued. Feb 25: Legai and ling cost were paid in cash in connection with Feb 21 transaction amounting to 25,000.00 Feb 25: Issued 1 ,000 ordinary shares for the legal service provided to corporation. The fair value of such services is reliably determined to be 120,000.00 Feb 2?: Received an amount of 1,500,000.00 cash as payment for 10,000 shares of ordinary and 5,000 shares of preference shares. The market values of ordinary and preterence shares are 150.00 and 250.00 respectively. Feb 23: A call from ordinary and preference subscriber for January 1 transacon resulted to issuance of stock certificates. Feb 29: Operation started in February with the Income summaryr resulting in a credit balance of 500,000.00 March 1 : Some Shareholders donated 1,000 shares of Ordinary shares with stated value oi 5000. March 2: 500 shares of ordinaryr shares acquired last March 1 were issued for 55.00 and retired the other 500 shares. March 3: The Krust Krah company re acquired 500 ordinary shares for treasury at 1'0 per share. March 5: Krustyr Krab issued 5,000 callable preference shares with warrant amounting ?00,000.00. The market value of preference share as warrant is 150 and the market value of warrant is 50. March 3: 50 of tire treasuryr shares were sold at 7500 March 0: Krusty Krab issued redeemable preference share 2,000 at 100 per share with mandatory redemption of 15000 March 1 1: 100 of the treasury shares were sold at 15.00 March 13: Redeemed the 2,000 shares issued March 9 at 150.00 March 15: Redeemed the 5,000 callable preference shares issued March 5 at 150.00 March 31: Operation started in March with the Income summary resulting in a credit balance of 100,000.00