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Pearl Holdings Inc. was incorporated on July 1,2008 with authorized share capital of 1,000,000 common...

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Accounting

Pearl Holdings Inc. was incorporated on July 1,2008 with authorized share capital of 1,000,000 common
shares and 500,000 preferred $4-cumulative preferred shares, convertible to common shares at a rate of
10 common shares for each preferred share. During its first year of operations Pearl had net income of
$126,000, other comprehensive income of $3,500 and declared no dividends. Pearl had the following
transactions related to share capital during the year.
Jul. 1,2008 Issued 100,000 common shares for $2 each.
Jul. 1,2008 Issued 5,000 preferred shares for $75 each.
Aug. 15,2008 Issued 10,000 common shares for legal services received, valued at $25,000.
Dec. 1,1008 Issued 5,000 common shares at $2.25 each in exchange for equipment received.
Jan. 15,2009 Reacquired 15,000 common shares for $3 each.
Mar. 8,2009 Half of the preferred shares were converted to common shares. On this date, the market
value of the common shares was $3.10 and the preferred share value was $80.
Instructions
Prepare the entries to record the share transactions described above.
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