Exercise
Issuing shares and preparing the
shareholders' equity section of
the balance sheet
Total shareholders' equity
$
The articles of incorporation for Midway Consulting Inc. authorize the company to issue
$ preferred shares and common shares. During its first year of opera
tions, Midway Consulting Inc. completed the following selected transactions:
Jan. Issued common shares to the consultants who formed the corporation,
receiving cash of $
Issued preferred shares for cash of $
Issued common shares in exchange for land valued at $
Dec. Earned a profit for the fiscal year and closed the $ net income into
Retained Earnings.
Required
Record the transactions in the general journal.
Prepare the shareholders' equity section of the Midway Consulting Inc. balance sheet
at December
