On January 1, 2021, Wally Wholesale Ltd. has 25,000 common shared issued for a total of $ 62,500, and no other shares or contributed capital. During 2021, Wally had the following transactions:
Jan 15 Issued 15,000 common shares for $ 2.50 each.
Mar 31 Settled an account for legal expenses by issuing 2,500 shares. The value of the legal services was $ 5,000.
Sep 30 Issued 9,000 shares in exchange for equipment with a fair value of $ 22,500.
Instructions
a) Record the transactions.
b) Calculate the total number issued and average cost per share of the common shares at the end of 2021.

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2021, Wally Wholesale Ltd. has 25,000 common shared issued for a total of $ 62,500, and no other shares or contributed capital. During 2021, Wally had the following transactions:
Jan 15 Issued 15,000 common shares for $ 2.50 each.
Mar 31 Settled an account for legal expenses by issuing 2,500 shares. The value of the legal services was $ 5,000.
Sep 30 Issued 9,000 shares in exchange for equipment with a fair value of $ 22,500.
Instructions
a) Record the transactions.
b) Calculate the total number issued and average cost per share of the common shares at the end of 2021.