P11-2 Recording Transactions Affecting Shareholders' Equity L011-3, 11-7, 11-8 King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 10 percent, $20 par value, authorized 51.000 shares. Common shares: no par value, authorized 181,500 shares. During year 1, the following transactions occurred in the order given: a. Sold and issued 25,500 common shares to each of the three organizers. Collected $12 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 25 percent of the non-cash payment received applies to the building. b. Sold and issued 7,100 preferred shares at $20 per share. Collected the cash and issued the shares immediately. c. Sold and issued 3,100 preferred shares at $20 and 3,100 common shares at $15 per share. Collected the cash and issued the shares immediately. d. The operating results at the end of year 11 were as follows: Revenues Expenses, including income taxes $ 385,eee 212,580 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.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 a. Cash Land 612,000 229.500 76,500 Building Common shares 918,000 2 b. Cash 142.000 Preferred shares 142,000 3 C. Cash 108,500 62.000 Preferred shares Common shares 46,500 4 d-1. 385.000 Revenues Income summary 385,000 5 d-2 Income summary Retained earnings 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: Preferred shares Common shares Retained earnings Total shareholders' equity s 0