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P11-2 Recording Transactions Affecting Shareholders' Equity LO11-3, 11-7, 11-8 King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 10 percent, $30 par value, authorized 44,000 shares. Common shares; no par value, authorized 104,000 shares. During year 1, the ollowing transactions occurred in the order given: a. Sold and issued 22,000 common shares to each of the three organizers. Collected $12 cash per share from two of the organizers. and received a plot of land with a small building on it in full payment for the shares of the third organizer and issued the shares immediately. Assume that 35 percent of the non-cash payment received applies to the building. b. Sold and issued 6,400 preferred shares at $30 per share. Collected the cash and issued the shares immediately. c. Sold and issued 2,400 d. The operating results at the end of year 11 were as follows: Required: 1. Prepare the journal entries to record each of these transactions and to close the accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fieid.) Required: 1. Prepare the journal entries to record each of these transactions and to close the accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Prepare the sharehoiders' equity section of the statement of financial position for King Corporation at the end of year 1 . KING CORPORATION Shareholders' Equity As at End of Year 1 Share capital: \begin{tabular}{|l|c|} \hline Common shares & \\ \hline Proferred shares & \\ \hline Rotained earnings & \\ \hline & \\ \hline Total shareholders' equity & $ \\ \hline \end{tabular}

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