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Presented below is information related to Cagne Corp.: Prepare the required journal entries. If an entry is not required, state this fact. 1. Cagne is granted a charter that authorizes issuance of 100,000 no par value preferred shares and an unlimited number of no par value common shares. 2. 10,000 common shares are issued for a building with a fair value of $ 800,000. 3. 5,000 preferred shares are issued for $ 200 per share. 4. Cagne, a private company, issues 500 common shares to the advertising firm it hired to promote its products. At this time, the company believes that the common shares are worth $ 80 per share. The actual advertising firm's invoice was for $45,000. 5. Cagne issues shares on a subscription basis. Each subscriber has the right to purchase 100 common bhares at $ 90 per share. 1 individual only accepts the offer and agrees to pay 20% in one week and the remainder in a second instalment. 6. First instalment payment received re (5) above. 7. The final instalment payment re (5) above is received and shares are issued. 8. Related to #5 above, assume that the investor cancelled the subscription after making the 20% payment. Due to the terms of the contract, the investor must forfeit completely the 20% down payment. 9. The company repurchased 1,000 common shares for $70. At that time, the average cost of the common shares was $80. The shares were retired. (Continued on next page) 10. The company repurchased more common shares, 2,000 shares, and paid $100 for the shares. The shares were retired. At the time, the common shares average cost was $80. 11. The company issued a stock-split. Assume that the market value of the remaining outstanding shares before the split was $ 900,000 12. The company bought all the common shares of Small Company for $100,000 cash. At that time, the fair value of all identifiable net assets was $90,000. 13. The company issued a stock dividend of 10% of the outstanding common shares. The total book value of all the common shares was $2,000,000, and the fair value $4.500.000

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