Peacock Ltd. owned 480,000 of Seagull Corporation's 600,000 common shares. On January 1, 2020, Peacock carried a balance in its Investment in Seagull" account of $1,800,000. Peacock also had a balance of $6,000 in its contributed surplus account. On January 1, 2020, Seagull issued an additional 25,000 common shares for $3.25 per share. Peacock chose to not purchase any of the new shares issued on January 1, 2020. REQUIRED: Prepare the journal entry to be recorded on the books of Peacock Ltd. to record the effect of Seagull issuing new common shares. Note: Round all currency amounts to the nearest whole amount (i.e. no decimals). Carry all percentages to 4 decimal places (e.g. 0.1234) |