Question

Question 2 Section A Use information provided below to answer the questions that follow Lee Corporation is authorized by its article to issue 200000 shares of $5 preferred shares and an unlimited number of common shares. The company started the year with 2000 and 7000 of common shares and preferred shares respectively. The table below shows the transactions that occurred during the first two years of the company's operations: Year 2017 90 Jan 12 Issued 6000 common shares at $7 per share March 15 Paid the promoters $ 7500 in kind [2100 common shares] Issued 9000 common shares in exchange for a machine valued at $S2000 and land selling at $60000 but the company thought that it may be worth $75000 April 30 May 31 Paid $2250 for transporting equipment to the organization June 30 Sold 5000 preferred shares for cash $70 pershare. Sept 30 Board of directors declared cash dividend of $ 1.70 to common shareholders and the dividend for preferred shares Dec 31 Paid the dividend both to common shareholder and preferred shareholders December 31 Closed the account with $52000 on debit balance in the income summary To the Retained earnings REQUIRED

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Answer 1

D E F G A B C Question - 2 Common Stock Date Value 12-Jan $42,000 15-Mar $7,500 30-Apr $112,000 Total equity | $161,500 Preferred Stock Date Value 30-Jun $25,000 Question - 3 Retained Earnings $16,280 1/1/2017 $12,300 $25,700 Dividends Net Loss 5 6 7 12/31/2017 $2,880 9 Total equity $186,500 11

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