Problem #5 - Stock Transactions (Unit 5) Remners Corporation is authorized to issue 10,000 shares of $100 stated value 10% convertible preferred shares and 200,000 no par value common shares. On January 1, 2013, the ledger contained the following shareholders' equity balances: Preferred Shares (4,000 shares) $ 400,000 Contributed Capital in Excess of Stated Value - Preferred 60,000 Common Shares (70,000 shares) 1,050,000 Retained Earnings 300,000 During 2013, the following transactions occurred: **NOTE: The conversions are recorded at book values, not market values. February 1 Issued 1,050 preferred shares for land having a fair market value of $125,000. The market value of the shares on this date was $115 per share. March 1 Issued 1,000 preferred shares for cash at $120 per share. July 1 Holders of 1,000 preferred shares purchased at $115 per share converted the shares into common shares. Each preferred share was convertible into 10 common shares. The market value of the preferred shares was $125 per share. September 1 Issued 400 preferred share for a patent. The asking price of the patent was $60,000. The market value of the preferred share was $125 per share. December 1 Holders of 1,000 preferred shares purchased at $120 per share converted the shares into common shares. Each preferred share was convertible into 10 common shares. Market values were preferred shares $125, and common shares, $16. Instructions: a) Prior to 2013, what was the average price at which the preferred shares were issued? b) Journalize the transactions that occurred during 2013