Osprey Inc. had the following shareholders equity on January 1, 2020

Common shares, 300,000 shares authorized, 100,000 shares issued and outstanding Contributed surplus

Retained Earnings

Total Shareholders Equity

The following transactions occurred, in the order given, during 2020.

$ 270,000 310,000 2,300.000 $2,880,000

1. Subscriptions were sold for 12,000 common shares at $30 per share. The first payment was for $12 per share.

2. The second payment for the sale in item 1 above was for $18 per share. All payments were received on the second payment except for 3,000 shares.

3. In accordance with the subscription contract, which require that defaulting subscribers have all their payments refunded, a refund cheque was sent to the defaulting subscribers. At this point common shares were issued to subscribers who had fully paid on the contract.

4. Repurchased 22,000 common shares at $31 per share. They were then retired.

5. Sold 5,000 preferred shares and 3,000 common shares together for $304,000. The common shares had a market value of $33 per share.

Prepare the journal entries to record the transactions for the company in 2020.

Question 2: Osprey Inc. had the following shareholder's equity on January 1, 2020 Common shares, 300,000 shares authorized, 100,000 shares issued and outstanding Contributed surplus Retained Earnings Total Shareholder's Equity $ 270,000 310,000 2,300.000 $2,880,000 The following transactions occurred in the order given, during 2020. 1. Subscriptions were sold for 12,000 common shares at $30 per share. The first payment was for $12 per share. 2. The second payment for the sale in item 1 above was for $18 per share. All payments were received on the second payment except for 3,000 shares. 3. In accordance with the subscription contract, which require that defaulting subscribers have all their payments refunded, a refund cheque was sent to the defaulting subscribers. At this point common shares were issued to subscribers who had fully paid on the contract. 4. Repurchased 22,000 common shares at $31 per share. They were then retired. 5. Sold 5,000 preferred shares and 3,000 common shares together for $304,000. The common shares had a market value of $33 per share. Prepare the journal entries to record the transactions for the company in 2020. [3 marks]