Question 6 [20 points] Segura Corporation began a very lucrative consulting operation on June 1,...
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Question 6 [20 points] Segura Corporation began a very lucrative consulting operation on June 1, 2014. They are authorized to issue 400,000 shares of $2.00 cumulative preferred shares. They are also authorized to issue 700,000 common shares. a. June 12: Gave the corporation's promoters 14,000 common shares for their services in organizing the corporation. The directors valued the services at $33,000. b. June 13 : 5,000 of the common shares were issued for a total of $25,000 cash. c. June 18: 5,000 common shares were issued in exchange for land valued at $25,000. d. June 21:10,000 of the preferred shares were issued for a total of $60,000 cash. e. June 24 : Issued 10,000 preferred shares at $3.77 per share for cash. f. June 30 : In addition to the declaration of the annual dividend on the preferred shares, dividends of $21,600 were declared on the common shares today. Prepare journal entries for the above transactions, entering the transaction letter as the explanation. Also, enter dates in the format dd/mmm (ie. 15/Jan)
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