Sampson Corporation was organized this year to operate a financial consulting business. The charter authorized the issue of 13,000 common shares. During the first year, the following selected transactions were completed:

1. Sold and issued 5,800 common shares for cash at $27 per share.
2. Sold and issued 580 common shares for a piece of land to be used for a facilities site; construction began immediately. Assume the land was appraised at $15,660 and that the market price per share was $27 on the date of issuance. Debit the land account.
3. Sold and issued 1,250 common shares for cash at $28 per share.
4. At year-end, the statement of earnings showed a loss of $8,500. Because a loss was incurred, no income tax expense was recorded.

Required: 1. Prepare the journal entry required for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Prepare the shareholders' equity section as it should be reported on the statement of financial position at the end of the year. (Amounts of loss should be indicated with a minus sign.)

3. Can Sampson pay dividends at year-end? multiple choice:

• Yes

• No

View transaction list X :: 1 Record sale of common shares. 2 Record purchase of land in exchange for 580 common shares. 3 Record sale of common shares. 4 Record closing entry to transfer the loss to Retained earnings. Credit Note : = journal entry has been entered Record entry Clear entry View general journal SAMPSON CORPORATION Shareholders' Equity As at End of Year Share capital: Shareholders' equity $ 0