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Trans World Publishing Inc. was recently organized. The company issued common shares to a lawyer who provided legal services of $15,000 to help organize the
Trans World Publishing Inc. was recently organized. The company issued common shares to a lawyer who provided legal services of $15,000 to help organize the corporation. Trans World also issued common shares to an inventor in exchange for his patent with a fair value of $80,000. In addition, Trans World received cash both for the issuance of 5,000 of its preferred shares at $110 per share and for the issuance of 20,000 common shares at $20 per share. During the first year of operations, Trans World earned net income of $55,000 and declared a cash dividend of $20,000. Without making journal entries, determine the total share capital created by these transactions Share capital consists of: Total share capital
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