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: 8 percent, $22 par value, authorized 48,000 shares. Common shares: no par value, authorized 178,500 shares. During year 1, the following transactions occurred in the order given: a. Sold and issued 24,000 common shares to each of the three organizers. Collected $8 cash per share from two of the organiz 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 share immediately. Assume that 20 percent of the non-cash payment received applies to the building. b. Sold and issued 6,800 preferred shares at $22 per share. Collected the cash and issued the shares immediately. c. Sold and issued 2,800 preferred shares at $22 and 2,800 common shares at $11 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 $ 370,000 220,000 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.) View transaction list Journal entry worksheet Record sale and issue of 72,000 common shares at $8 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Cash Record entry Clear entry View general journal Journal entry worksheet Record sale and issue of 6,800 preferred shares at $22 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Cash Record entry Clear entry View general journal Journal entry worksheet Record sale and issue of 2,800 preferred shares at $22 per share and 2,800 common shares at $11 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit C. Cash Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 > Record closing entry to transfer revenues and expenses to income summary. Note: Enter debits before credits. Transaction General Journal Debit Credit d-1. Record entry Clear entry View general journal Journal entry worksheet