Jan. 10 Question 1 Abernathy Corporation was organized on January 1, 2022. It is authorized to issue 10,000 shares of 8%, $50 par value preference shares, and 500,000 shares of no-par ordinary shares with a stated value of $2 per share. The following share transactions were completed during the first year. Issued 80,000 ordinary shares for cash at $5 per share. Mar. 1 Issued 5,000 preference shares for cash at $108 per share. Apr. 1 Issued 24,000 ordinary shares for land. The asking price of the land was $90,000; the fair value of the land was $80,000 May 1 Issued 80,000 ordinary shares for cash at $7 per share. Aug. 1 Issued 10,000 ordinary shares to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize. Sept. 1 Issued 10,000 ordinary shares for cash at $9 per share. Nov. 1 Issued 1,000 preference shares for cash at $112 per share. Required: Prepare the journal entries to record the above transactions. Question 2 Davison plc recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's ordinary shares. May 2 Cash 192,000 Share Capital - Ordinary 192,000 (Issued 12,000 shares of 10 par value ordinary shares at 16 per share) May. 10 Cash 600,000 Share Capital --Ordinary 600,000 (Issued 10,000 shares of 30 par value preference shares at 60 per share) May. 15 Share Capital - Ordinary 14,000 Cash 14,000 (Purchased 1,000 ordinary shares for the treasury at 14 per share) May. 31 Cash 8,500 Share Capital - Ordinary 5,000 Gain on Sale of Shares 3,500 (Sold 500 treasury shares at 17 per share) Required: On the basis of the explanation for each entry, prepare the entries that should have been made for the ordinary share transactions