King Corporation began operations in January, year 1. The charter authorized the following share capital:

Preferred shares: 11 percent, $25 par value, authorized 52,000 shares.

Common shares: no par value, authorized 182,500 shares.

During year 1, the following transactions occurred in the order given:

1. Sold and issued 26,000 common shares to each of the three organizers. Collected $9 cash per share from two of the organizers, and received a plot of land with a small building on it in full payment for the shares of the third organizer and issued the shares immediately. Assume that 30 percent of the non-cash payment received applies to the building.
2. Sold and issued 7,200 preferred shares at $25 per share. Collected the cash and issued the shares immediately.
3. Sold and issued 3,200 preferred shares at $25 and 3,200 common shares at $12 per share. Collected the cash and issued the shares immediately.
4. The operating results at the end of year 11 were as follows:

Revenues	$	390,000
Expenses, including income taxes		210,000

Required:

1. Prepare the journal entries to record each of these transactions and to close the accounts. (If no entry is required for a

3. Prepare the shareholders equity section of the statement of financial position for King Corporation at the end of year 1