Question
In: Accounting
McGregor Corporation is authorized to issue an unlimited number of common shares and 500,000 shares of...
McGregor Corporation is authorized to issue an unlimited number
of common shares and 500,000 shares of preferred shares. During
2021, its first year of operation, the company had profit of
$305,000. The following share transactions occurred:
| Jun | 1 | Paid the province $1,800 for incorporation fees. |
| Jun | 5 | Issued 100,000 of $4 cumulative preferred shares at $22 per share. |
| Jul | 25 | Lawyers for the company accepted 250 common shares as payment for legal services |
provided in helping the company incorporate. The legal services are estimated to have a value of $4,500. The shares were actively trading at $20 per share.
| Oct | 18 | Issued 45,000 common shares for land. The land had an asking price of $850,000. The |
shares are currently selling on a Toronto Stock Exchange at $18
per share.
Instructions
| a) | Journalize the transactions for McGregor Corporation assuming the company follows IFRS. |
| b) | Prepare the shareholders' equity section of the balance sheet at December 31, 2021. |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
McGregor Corporation is authorized to issue an unlimited number of common shares and 500,000 shares of...
McGregor Corporation is authorized to issue an unlimited number
of common shares and 500,000 shares of preferred shares. During
2021, its first year of operation, the company had profit of
$305,000. The following share transactions occurred:
Jun
1
Paid the province $1,800 for incorporation fees.
Jun
5
Issued 100,000 of $4 cumulative preferred shares at $22 per
share.
Jul
25
Lawyers for the company accepted 250 common shares as payment
for legal services
provided in helping the company incorporate. The...
Marin Inc., a private company, is authorized to issue an unlimited number of common shares and...
Marin Inc., a private company, is authorized to issue an
unlimited number of common shares and 180,000 noncumulative $3
preferred shares. It began operations on January 1, 2021, and the
following are selected transactions during 2021.
Jan.
1
Issued 400,000 common shares for $200,000 cash.
2
Issued 40,000 preferred shares for $50 cash per share.
Dec.
1
Declared a total of $225,000 in dividends, payable on January
5, to shareholders of record on December 13.
31
Determined that it had...
Riverbed Corporation is authorized to issue an unlimited number of $5 cumulative preferred shares and an...
Riverbed Corporation is authorized to issue an unlimited number
of $5 cumulative preferred shares and an unlimited number of common
shares. On February 1, 2020, the general ledger contained the
following shareholders' equity accounts:
Preferred shares (10,000 shares issued)
$460,000
Common shares (72,000 shares issued)
1,224,000
Retained earnings
799,000
The following equity transactions occurred during the year ended
January 31, 2021:
Feb.
28
Issued 5,500 preferred shares for $319,000.
Apr.
12
Issued 210,000 common shares for $3.78 million.
May
25...
Splish Brothers Inc., a private company, is authorized to issue an unlimited number of common shares...
Splish Brothers Inc., a private company, is authorized to issue
an unlimited number of common shares and 160,000 noncumulative $3
preferred shares. It began operations on January 1, 2021, and the
following are selected transactions during 2021.
Jan.
1
Issued 480,000 common shares for $240,000 cash.
2
Issued 48,000 preferred shares for $30 cash per share.
Dec.
1
Declared a total of $235,200 in dividends, payable on January
5, to shareholders of record on December 13.
31
Determined that it...
Background Information: Cipper Corporation is authorized to issue an unlimited number of no par value common...
Background Information: Cipper Corporation is
authorized to issue an unlimited number of no par value common
shares, and has 100 000 shares outstanding. The business has the
following balances in its shareholders' equity accounts:
Cipper
Corporation Shareholders' Equity
Common Shares
$300 000
Retained Earnings
120 000
Total Equity
$420 000
As you can see, the company has enough in its Retained Earnings
account to declare a dividend. The board of directors has decided
to either pay a $1 per share...
Westby Corp., a high school uniform manufacturer, was authorized to issue an unlimited number of common...
Westby Corp., a high school uniform manufacturer, was authorized
to issue an unlimited number of common shares. During January 2020,
its first month of operations, the following selected transactions
occurred:
Jan. 1 1,000 shares
were issued to the organizers of the corporation. The total value
of the shares was determined to be $11,700.
5 15,000 shares were
sold to various shareholders for $13.20 each.
15 The board of
directors declared a...
Mark Inc. has authorized share capital of an unlimited number of common shares and 1,000,000 preferred,...
Mark Inc. has authorized share capital of an unlimited
number of common shares and 1,000,000 preferred, $3 preferred
shares. At January 1, 2019, the balance in its shareholders equity
includes $45,000 in common shares representing 15,000 shares and
$30,000 in preferred shares representing 1,000 shares and retained
earnings of $185,000. Profit for the year ending December 31, 2019
was $30,000. No dividends were declared during 2019.
During 2019, Mark Inc. had the following share transactions:
Mar 1 Issued 4,000 common...
Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 500,000 shares...
Gilligan Corporation was established on February 15, Year 1.
Gilligan is authorized to issue 500,000 shares of $6.00 par value
common stock. As of December 30, Year 1, Gilligan's stockholders'
equity accounts report the following balances: Common stock, $6
par, 500,000 shares authorized 55,000 shares issued and outstanding
$ 330,000 Paid-in capital in excess of par - Common 440,000 $
770,000 Retained earnings 1,400,000 Total Stockholders' Equity $
2,170,000 On December 31, Year 1, Gilligan decides to issue a 5%...
Edgar Corporation was authorized to issue 100,000 shares of $8 par common stock and 50,000 shares...
Edgar Corporation was authorized to issue 100,000 shares of $8
par common stock and 50,000 shares of $80 par, 4 percent,
cumulative preferred stock. Edgar Corporation completed the
following transactions during its first two years of operation:
2016
Jan. 2 Issued 25,000 shares of $8 par common stock for $10 per
share.
Jan. 15 Issued 2,000 shares of $80 par preferred stock for $90
per share.
Feb. 14 Issued 20,000 shares of $8 par common stock for $12 per
share....
In January 2014, Vanowski Corporation was organized and authorized to issue 2,000,000 shares of no-par common...
In January 2014, Vanowski Corporation was organized and
authorized to issue 2,000,000 shares of no-par common stock and
50,000 shares of 5 percent, $50 par value, noncumulative preferred
stock. The stock-related transactions for the first year's
operations follow.
Jan. 19 Sold 15,000 shares of common stock for
$31,500. State law requires a minimum of $1 stated value per
share.
Jan. 21 Issued 5,000 shares of common stock to
attorneys and accountants for services valued at $11,000 and
provided during the...
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