Question 1 [30 points]

Stake Technology Inc. was authorized to issue an unlimited number of common shares. During December 2014, their first month of operations, the following selected transactions occurred

Question 1 [30 points) Stake Technology Inc. was authorized to issue an unlimited number of common shares. During December 2014, their first month of operations, the following selected transactions occurred: a. December 5: 6,000 common shares were issued in exchange for land valued at $6,000. b. December 15: Issued 11,000 common shares at $0.50 per share for cash. c. December 22: Gave the corporation's promoters 13,000 common shares for their services in organizing the corporation. The directors valued the services at $41,600. d. December 27: 9,000 of the common shares were issued for a total of $15,300 cash. e. December 31: Closed the Income Summary account. An income of $85,000 was earned. a) Prepare journal entries for the above transactions, entering the transaction letter as the explanation, and the dates in the format dd/mmm, (ie. 15/Jan). General Journal Date Account/Explanation F Debit Credit Page GJ5 + - b) Prepare the equity section of the balance sheet of Stake Technology Inc. at December 31, 2014. Stake Technology Inc. Equity Section of Balance sheet December 31, 2014 Common shares, unlimited shares authorized; shares issued and outstanding (Select one) b. December 15: Issued 11,000 common shares at $0.50 per share for cash. c. December 22: Gave the corporation's promoters 13,000 common shares for their services in organizing the corporation. The directors valued the services at $41,600. d. December 27: 9,000 of the common shares were issued for a total of $15,300 cash. e. December 31: Closed the Income Summary account. An income of $85,000 was earned. a) Prepare journal entries for the above transactions, entering the transaction letter as the explanation, and the dates in the format dd/mmm, (ie. 15/Jan). General Journal Page GJ5 Date Account/Explanation Debit Credit F + + b) Prepare the equity section of the balance sheet of Stake Technology Inc. at December 31, 2014. Stake Technology Inc. Equity Section of Balance sheet December 31, 2014 Common shares, unlimited shares authorized; shares issued and outstanding. (Select one). (Select one) c) What was the average issue price per common share? Average issue price per common share