Pearl Holdings Inc. was incorporated on July with authorized share capital of common
shares and preferred $cumulative preferred shares, convertible to common shares at a rate of
common shares for each preferred share. During its first year of operations Pearl had net income of
$ other comprehensive income of $ and declared no dividends. Pearl had the following
transactions related to share capital during the year.
Jul. Issued common shares for $ each.
Jul. Issued preferred shares for $ each.
Aug. Issued common shares for legal services received, valued at $
Dec. Issued common shares at $ each in exchange for equipment received.
Jan. Reacquired common shares for $ each.
Mar. Half of the preferred shares were converted to common shares. On this date, the market
value of the common shares was $ and the preferred share value was $
Instructions
Prepare the entries to record the share transactions described above.
