Question $2$

$1-$Mar The company authorized the issuing of unlimited number of common shares

and $300,000$ $$1\mathrm{.}00$ cumulative preferred shares.

$4-$Mar Issued $500,000$ common shares for cash.

Each share was issued for $$1\mathrm{.}50$ each.

$6-$Mar Issued $5000$ common shares in exchange for

accounting services valued at $$5,000$

$11-$Mar Issued $50,000$ $$1\mathrm{.}00$ cumulative preferred shares at $$10$ each.

$15-$Mar Issued $125,000$ common shares to purchase a new building that cost $$125,000$

$20-$Mar Declared the annual dividend on cumulative preferred shares.

$25-$Mar Paid the dividend declared on preferred shares.

The company made $$135,000$ profit.

Retained earnings opening balance $$25,000$

Prepare the appropriate journal entries.

Date Description DR CR

$4-$Mar

$6-$Mar

$11-$Mar

$15-$Mar

$20-$Mar

$25-$Mar