* Question 7 Bridgeport Limited has been authorized to issue 20,800 E101 par value, 10%%, non-cumulative preference shares and 1,106,905 no-par ordinary shares. The corporation assigned a E2.65 stated value to the ordinary shares. At December 31, 2017, the ledger contained the following balances pertaining to equity Share Capital-Preference Share Premium-Preference Share Capital-Ordinary Share Premium-Ordinary Treasury Shares-Ordinary (1,040 shares) Share Premium Treasury Retained Earnings E111,100 23,700 1,106,905 1,789,000 10,400 1,040 83,400 The preference shares were issued for land having a fair value of 134,800. All ordinary shares issued were for cash. In November, 1,560 ordinary shares were purchased for the treasury at a per share cost of 10. In December, 520 treasury shares were sold for 12 per share. No dividends were declared in 2017 Question 7 y] Your answer is correct. Prepare the journal entries for the: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) Issuance of preference shares for land (2) Issuance of ordinary shares for cash (3) Purchase of treasury shares (ordinary) for cash. (4) Sale of treasury shares for cash No. Account Titles and Explanation Debit Credit 1. Share Capital-Preferencei110 hare Premium-Prefere Coash 2395905 2. hare Capital-Ordina 10690 TH799000! 15,6001 hare Premium-Ordina ry reasury Shar Coash 4. 24 reasury Shar 20 0401 hare Premium-Treasu * Question 7 Your answer is partially correct. Try again Prepare the equity section at December 31, 2017. BRIDGEPORT LIMITED Statement of Financial Position (Partial) ecember 31, 2017 quity hare Capital-Preference hare Capital-Ordinary Share premium - Prefer Share premium - Treasu 111,100 ,106,905 3,700 1,789,000 hare Premium-Ordinar 1,040 3,400 0,400 3,104,745 etained earnings Less: Treasury Shares otal Equity