P10-2 (Algo) Preparing the Shareholders' Equity Section after Selected Transactions LO10-3, 10-7, 10-8 King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 11 percent, $30 par value, authorized 59,000 shares Common shares: no par value, authorized 195,000 shares During year 1, the following transactions occurred in the order given: a. Sold and issued 29,500 common shares to each of the three organizers Collected $10 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 35 percent of the non-cash payment received applies to the building. b. Sold and issued 7,900 preferred shares at $30 per share. Collected the cash and issued the shares immediately. c. Sold and issued 3,900 preferred shares at $30 and 3.900 common shares at $13 per share. Collected the cash and issued the shares immediately. d. The operating results at the end of year 1 were as follows: Revenues Expenses, including income taxes Required: $425,000 192,500 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) View transaction list Journal entry worksheet < 1 2 345 Record sale and issue of 88,500 common shares at $10 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal > 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. KING CORPORATION Shareholders' Equity As at End of Year 1 Share capital