Question
The Smart Supplies Inc. is operating its business in GTA and producing different products. The company has authorized share capital of 500,000 common shares and
The Smart Supplies Inc. is operating its business in GTA and producing different products.
The company has authorized share capital of 500,000 common shares and 20,000 preferred, $6 preferred shares. On January 1, 2019, the balance in its shareholders equity includes $200,000 in common shares representing 40,000 shares and $100,000 in preferred shares representing 1,000 shares and retained earnings of $210,000. Profit for the year ending December 31, 2019 was $35,000. No dividends were declared during 2019.
The Smart Supplies Inc. had the following share transactions during the year 2019:
Jan 15 Issued 5,000 common shares for $6 each.
Mar 30 Issued 500 preferred shares for $100 each.
Oct11 Issued 15,000 common shares in exchange for land valued at $93,750
You are required to record the share transactions and prepare the equity section of the Smart
Supplies Inc. at the end of the year 2019
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