Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pukalani Ltd. was incorporated as a private company on January 2, 2018, and is authorized to issue an unlimited number of common shares and $1
Pukalani Ltd. was incorporated as a private company on January 2, 2018, and is authorized to issue an unlimited number of common shares and $1 preferred shares. The company had the following share transactions in its first month of operations:
Jan. 6 Issued 189,000 common shares for $1.50 per share. 12 Issued 45,000 common shares for $1.60 per share. 17 Issued 10,700 preferred shares for $27.00 per share. 18 Issued 486,000 common shares for $2.00 per share. 24 Reacquired 184,000 common shares at $1.90 per share. 31 Issued 10,300 common shares in exchange for $15,450 of legal services. Record the above transactions. (Round average cost per share to 3 decimal places, e.g. 1.246 Date Account Titles and Explanation Debit Credit Jan. 6 Cash 283500 Common Shares 283500 Jan. 12 Cash 72000 Common Shares 72000 Jan. 17 Cash 288900 Preferred Shares 288900 Jan. 18 Cash 972000 Common Shares 972000 X Jan. 24 Common Shares 345920 > Retained Earnings 3680 Cash 349600
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started