127) Describe the rights typically enjoyed by shareholders.
128) The following transactions took place in June for the Holista Corporation:
June1 Issued 1,000 shares of $100 preferred shares.
10Issued 3,000 shares of common shares for $18 per share.
15Received land with a fair market value of $60,000 and a building with a fair market value of $180,000 in exchange for 15,000 shares of common shares.
Prepare journal entries for the above transactions.
129) Eastern Pacific Corporation lost some of its accounting records in a fire on August 10, 2011. The following information has been salvaged from the rubble.
The preferred shares account has a balance of $251,900. The common shares were issued for an average price of $55 per share. There are 30,000 shares of common shares issued. The Retained Earnings account has a balance of $172,000 on August 10, 2011. The preferred shares were issued for an average price of $110.
Required:
a. Determine the number of preferred shares issued.
b. What is the balance in the Common Shares account
c. What is total share capital?
d. What is total shareholders' equity?
130) On June 30, 2011, Sneeze Limited was authorized to issue 60,000 shares of $5 cumulative preferred shares and 250,000 shares of common shares. During its start-up phase, the company engaged in several transactions.
Prepare journal entries for the following transactions:
June30Sold 40,000 shares of preferred shares at $110 per share.
30Sold 50,000 shares of common shares at $30 per share.
July5Issued 5,000 shares of common shares in exchange for equipment valued objectively at $165,000.
131) JetNew issued 50,000 common shares on January 1, 2011 at $8 each. Preferred shares were issued on March 15, 2011 at $10 each with a dividend rate of $0.50. JetNew sold 20,000 of these shares. On November 15, in order to buy into the business, another shareholder offered up a building valued at $300,000 for 30,000 common shares. At the time of this transaction JetNew shares were trading at $9. Prepare the required journal entries.