P11-2 Recording Transactions Affecting Shareholders' Equity LO11-3, 11-7, 11-8 King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 12 percent, $20 par value, authorized 60,000 shares Common shares: no par value, authorized 200.000 shares During year 1, the following transactions occurred in the order given: a. Sold and issued 30,000 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, b. Sold and issued 8,000 preferred shares at $20 per share. Collected the cash and issued the shares immediately. c. Sold and issued 4,000 preferred shares at $20 and 4.000 common shares at $14 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 $430,000 190,000 Required: 1. Prepare the journal entries to record each of these transactions and to close the accounts (If no entry is required for transaction/event, select "No journal entry required in the first account field.) Answer is not complete. No Transaction General Journal Debit Credit 1 a Cash Land Building Common shares OOO 2 b. Cash Preferred shares o 3 . Cash Preferred shares Common shares Bloo d-1 Revenues Expenses Income summary ooo 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. Answer is not complete. KING CORPORATION Shareholders'Equity As at End of Year 1 Share capital Preferred shares Common shares Retained earnings 0 Total shareholders' equity $