McGregor Corporation is authorized to issue an unlimited number of common shares and 500,000 shares...
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Accounting
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.
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