QUESTION TWO (a) Beauty Island Corporation began operations on April 1 by issuing 60,000 shares of K5 par value common stock for cash at K13 per share. On April 19, it issued 2,000 shares of common stock to attomeys in settlement of their bill of K27,500 for organization costs. In addition, Beauty Island issued 1,000 shares of K1 par value preferred stock for K6 cash per share. Required Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded. [5marks] (b)Anders Corporation has issued 100,000 shares of K.5 par value common stock. It authorized 500,000 shares. The paid-in capital in excess of par on the common stock is K240,000. The corporation has reacquired 7,000 shares at a cost of K46,000 and is currently holding those shares. Treasury stock was reissued in prior years for K47,000 more than its cost. The corporation also has 2,000 shares issued and outstanding of 7%,K100 par value preferred stock. It authorized 10,000 shares. The paid-in capital in excess of par on the preferred stock is K23,000. Retained earnings is K 372,000 . Required. Prepare the stockholders' equity section of the balance sheet. [10marks] (c) Quay Co. had the following transactions during the current period. Mar. 2 Issued 5,000 shares of K5 par value common stock to attorneys in payment of a bill for K30,000 for services performed in helping the company to incorporate. June 12 Issued 60,000 shares of K5 par value common stock for cash of K375,000. July 11 Issued 1,000 shares of K100 par value preferred stock for cash at K110 per share. Nov. 28 Purchased 2,000 shares of treasury stock for K 80,000