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: 6 percent, $25 par value, authorized 43,000 shares. Common shares: no par value, authorized 103,000 shares. During year 1, the following transactions occurred in the order given: a. Sold and issued 21,500 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 20 percent of the non-cash payment received applies to the building. b. Sold and issued 6,300 preferred shares at $25 per share. Collected the cash and issued the shares immediately. c. Sold and issued 2,300 preferred shares at $25 and 2,300 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 $ 345,000 232,500 Revenues Expenses, including income taxes $ 345,000 232,500 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.) X Answer is complete but not entirely correct. No Transaction General Journal Debit Credit 1 a. Cash Land 473,000 165,550 X 70,950 X Building Common shares 709,500