The partnership of Nuan Zhang and Jen Phuah needed additional capital to expand into new markets, so the business incorporated as A-1 Services Inc. The articles of incorporation under the Canada Business Corporations Act authorize A-1 Services Inc. to issue 500,000 $2.50 preferred shares and 2,000,000 common shares. In its first year, A-1 Services Inc. completed the following share-related transactions: Problem 13-2A 2014 Paid incorporation fees of $6,000 and paid legal fees of $16,000 to organize as a corporation. Aug, 2 2 Issued 20,000 common shares to Zhang and 25,000 common shares to Phuah in return for cash. Zhang paid $150,000 cash, and Phuah paid $187,500 cash. Issued 1,000 preferred shares to acquire a computer system with a market value of $80,000 Dec. 10 16 Issued 15,000 common shares for cash of $120,000 tnerships and Corporate Transactions