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, $30 par value, authorized 50,000 shares. Common shares: no par value, authorized 180,500 shares. During year 1, the following transactions occurred in the order given: a. Sold and issued 25,000 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 7,000 preferred shares at $30 per share. Collected the cash and issued the shares immediately. c. Sold and issued 3,000 preferred shares at $30 and 3,000 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 $ 380,000 215,000 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 iournal entru renuired" in the first account field) View transaction list Journal entry worksheet Record sale and issue of 75,000 common shares at $11 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit a. 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: Total shareholders' equity