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King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 9 percent, $24 par value, authorized 47,000 shares.

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King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 9 percent, $24 par value, authorized 47,000 shares. Common shares: no par value, authorized 177,000 shares. During year 1 , the following transactions occurred in the order given: a. Sold and issued 23,500 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 recelved applies to the building. b. Sold and issued 6,700 preferred shares at $24 per share. Collected the cash and issued the shares immediately. c. Sold and issued 2,700 preferred shares at $24 and 2,700 common shares at $12 per share. Collected the cash and issued the shares immediately. d. The operating results at the end of year 11 were as follows: 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.) 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.) 1 Record sale and issue of 70,500 common shares at $9 per share. 2 Record sale and issue of 6,700 preferred shares at $24 per share. 3 Record sale and issue of 2,700 preferred shares at $24 per share and 2,700 common shares at $12 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. Note : = journal entry has been entered 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

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