Sonoma Lakes Ltd. (SLL) has the following authorized share capital:
Unlimited Common voting shares
500,000 Class A, $5 cumulative preferred shares
500,000 Class B, $10 non-cumulative preferred shares
During 2014, SLL had the following share transactions for cash:
Jan 1 Issued 50,000 common shares for $100,000.
Mar 12 Issued 1,000 Class A preferred shares for $60,000.
Apr 30 Issued 20,000 common shares for $2.50 per share.
Jun 20 Issued 3,000 Class B preferred shares for $70 per share.
Jul 2 Reacquired 10,000 common shares for $3 per share.
SLL did not declare any dividends during 2014. On December 31, 2015, a dividend of $3 per share was declared on preferred shares issued.
Instructions
a. Journalize the share transactions.
b. Calculate the number of common shares issued at December 31, 2014 and the average cost per common share.

Question

Quizplus · Accepted Answer

The Answer of Sonoma Lakes Ltd. (SLL) has the following authorized share capital:
Unlimited Common voting shares
500,000 Class A, $5 cumulative preferred shares
500,000 Class B, $10 non-cumulative preferred shares
During 2014, SLL had the following share transactions for cash:
Jan 1 Issued 50,000 common shares for $100,000.
Mar 12 Issued 1,000 Class A preferred shares for $60,000.
Apr 30 Issued 20,000 common shares for $2.50 per share.
Jun 20 Issued 3,000 Class B preferred shares for $70 per share.
Jul 2 Reacquired 10,000 common shares for $3 per share.
SLL did not declare any dividends during 2014. On December 31, 2015, a dividend of $3 per share was declared on preferred shares issued.
Instructions
a. Journalize the share transactions.
b. Calculate the number of common shares issued at December 31, 2014 and the average cost per common share.