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

Preferred shares: 6 percent, $30 par value, authorized 50,000 shares.

Common shares: no par value, authorized 180,500 shares.

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

1. Sold and issued 25,000 common shares to each of the three organizers. Collected $11 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 7,000 preferred shares at $30 per share. Collected the cash and issued the shares immediately.
3. Sold and issued 3,000 preferred shares at $30 and 3,000 common shares at $14 per share. Collected the cash and issued the shares immediately.
4. The operating results at the end of year 11 were as follows:

Revenues	$	380,000
Expenses, including income taxes		215,000

Required:

1. Prepare the journal entries to record each of these transactions and to close the accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Transaction list:

• 1

  Record sale and issue of 75,000 common shares at $11 per share.

• 2

  Record sale and issue of 7,000 preferred shares at $30 per share.

• 3

  Record sale and issue of 3,000 preferred shares at $30 per share and 3,000 common shares at $14 per share.

• 4

  Record closing entry to transfer revenues and expenses to income summary.

• 5

  Record closing entry to transfer the profit to Retained earnings.

• 2. This part of the question is not part of your Connect assignment.

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