Pearl Holdings Inc. was incorporated on July 1, 2020 with authorized share capital of 1,000,000...
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Pearl Holdings Inc. was incorporated on July 1, 2020 with authorized share capital of 1,000,000 common shares and 500,000 preferred shares, convertible to common shares at a rate of 10 common shares for each preferred share. The preferred shares have a $20 par/stated value.
Pearl had the following transactions related to share capital during the next few years.
Jul. 1 Issued 100,000 common shares for $4 each.
Jul. 1 Issued 5,000 preferred shares for $35 each.
Aug. 15 Issued 10,000 common shares for legal services received, valued at $25,000.
Sept. 1 Issued 5,000 common shares at $2.25 each in exchange for equipment received.
Nov. 15 Reacquired 15,000 common shares for $3 each.
Dec. 18 Converted 2000 preferred shares to common shares
Prepare journal entries.
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